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The 

Bethlehem  Steel 
Company 

Appeals  to  the  People 

against  the  proposal  to 
expend  $11,000,000  of 
the  people's  money  for 

A  Government  Armor  Plant 


V  Republished  by 


^A. 


Bethlehem  Steel  Company 

South  Bethlehem,  Pa. 


^ 


Robert  L.  Stillson  Company 
New  York 


Contents 


Parti 


Page 
Introduction 7-8 

The  President  of  the  Bethlehem  Steel  Company 
Appeals  to  Congress  for  a  Square  Deal 9-14 

BULLETINS,  SERIES  1 

Our  Position 14 

No.  1.    Why   Should   Government   Money   be 

Spent  for  an  Armor  Factory 15 

No.  2.    Armor  Manufacture — Private  or  by  Gov- 
ernment— A  Question  of  Price 16 

No.  3.    Is  This  the  Time  to  Start  a  Government 

Armor  Plant? 17 

No.  4.    Bethlehem  Profits  and  Policies  in  Armor 

Contracts 18 

No.  5.    Is  Government  Manufacture  of  Armor 

for  Battleships  Wise? 19 

No.  6.    Should  the  Government  Destroy  Private 

Armor-making  Industries  ? 20 

No.  7.   Three  Misconceptions  About  the  Bethle- 
hem Steel  Company 21 

No.  8.    What  National  Advantage  Do  Private 

Armor  Plants  Serve? 22 

No.  9.    A  Mistake  in  the  PoUcy  of  the  Bethle- 
hem Steel  Company 23 

No.  10.    What  Would  It  Cost  the  U.  S.  to  Manu- 
facture its  Own  Armor? 24 

A'^o.  11.    What  Is  the  Ultimate  Purpose  of  a 

Government  Armor  Plant?  25 

No.  12.    Why  We  Offer  to  Reduce  the  Price  of 

Armor  Plate 26 

BULLETINS.    SERIES  2 

No.  I.   The  Bethlehem  Steel  Company's  Offer 

to  the  U.  S.  Government 27 

No.  2.    Why  We  Are  Opposing  a  Government 

Armor  Plant 28 

No.  3.    How  the  U.  S.  Gets  the  Best  Armor  for 

Its  Battleships 29 

No.  4.    Can  the  U.  S.  Government  Save  Money 

by  Making  Its  Own  Armor  ? 30 

No.  5.   Why  Not  Face  the  Facts  About  Armor 

Competition 31 

No.  6.    Aren't  the  People  Entitled  to  Know  the 

Facts? 32 


Page 
No.  7.   The  Bethlehem  Steel  Company's  Offer 

to  Serve  the  United  States 33 

No.  8.   ShaU  the  Nation's  Welfare  Wait  on  Ex- 
periments in  Government  Ownership?  34-35 

No.  9.    Privately  Owned  Factories  Will  Save 

the  Nation 36-37 

No.  10.   Selling  Armor  in  Europe  Cheaper  than 

in  the  United  States 38-39 

No.  11.   Some  Questions  Asked  of  Bethlehem 

Steel  Company 40-41 

No.  12.   Why  Armor  Manufacturers  Have  Not 

Shown  Their  Books 42-43 

No.  13.    Existing  Armor  Plants  Able  to  Obtain 

Ample  Ore  in  Case  of  War 44-45 

No.  14.    What  Can  We  Learn  from  England 

About  Armor  Plate  Manufacture ....  46-47 


A  SERIES  OF  ADVERTISEMENTS 

Inserted  in  3,257  City  and 
Country  Newspapers 

A  Mistake  in  the  Policy  of  the  Bethlehem  Steel 
Company 48 

Why  We  Are  Opposing  a  Government  Armor 
Plant 49 

Why  Not  Face  the  Facts  About  Armor  Compe- 
tition ? 50 

The  Bethlehem  Steel  Company's  Offer  to  Serve 
the  United  States 51 

Suppose  This  Was  Your  Business ! 52 

Aren't  the  People  Entitled  to  Know  All  the  Facts? 53 

Statement  from  Eleventh  Annual  Report  Beth- 
lehem Steel  Company ' '  54-56 

Remarks  of  Charles  M.  Schwab  to  Stock- 
holders of  Bethlehem  Steel  Company,  April 
4,1916 57-59 

Statement  by  Eugene  G.  Grace  to  House  Com- 
mittee on  Naval  Affairs,  March  22,  1916 60-62 

Letter  to  Chairman  of  Senate  Committee  on 
Naval  Affairs,  June  19,  1916 63-71 

No  Danger  to  Ore  Supply  of  Private  Armor 
Plants,  Charles  M.  Schwab's  Letter 72-73 

What  Six  Members  of  Congress  Say 74 


347^83 


Contents^ 


CONTINUED 


Part  II 

What  People  Are  Thinking — Editorial 
Comment  by  the  Press 


Page 

Alabama 3 

California 4 

Colorado 5 

Connecticut . .  . 6 

Delaware 7 

District  of  Columbia 8 

Georgia 9-10 

Illinois 11-14 

Indiana 15-16 

Iowa 17-20 

Kansas 21 

Maine 22 

Massachusetts 23-26 

Michigan 27-28 

Minnesota 29 

Missouri 30 

Nebraska 31 

National 


Page 

New  Hampshire 32 

New  Jersey 33 

New  Mexico 34 

New  York 35-41 

Ohio 42-43 

Oregon 44 

Pennsylv8Uiia 45-50 

Rhode  Island 51 

South  Carohna 52 

South  Dakota 53 

Tennessee 54 

Texas 55 

Vermont 56 

Virginia 57-58 

Washington 59 

West  Virginia 60 

Wisconsin 61 

62-66 


Our  Case  In  Brief 


To  the  Members  of  Congress: 

The  following  pages  contain  the  case  we  have  attempted  to  make  against  a  Government  armor 
plant. 

We  have  sought  to  bring  that  case  to  the  attention  of  the  people  and  the  people's  representatives 
in  Congress  in  the  form  of  statements  to  Congressional  Committees,  reports  to  om*  own  stock- 
holders, public  statements  to  members  of  Congress,  and  advertisements  pubHshed  in  newspapers 
throughout  the  United  States. 

The  case  in  brief  is  this: 

Things  Not  True 

1.  It  is  not  true  that  we  have  threatened  to  raise  the  price  of  armor  if  the  Government  plant  is 
authorized. 

2.  It  is  not  true  that  we  have  made  a  policy  of  selling  armor  abroad  cheaper  than  in  this  country. 

3.  It  is  not  true  that  we  have  refused  to  show  our  books  to  the  Government. 

4.  It  is  not  true  that  manufacturers  have  combined  to  suppress  competition;  the  Government's 
own  policy  has  prevented  competition. 

5.  It  is  not  true  that  we  have  charged  excessive  prices  for  armor. 


Things  True 

1.  This  country  has  the  best  armor  in  the  world. 

2.  This  country  has  for  twenty  years  paid  less  for  armor  than  any  of  the  great  naval  powers. 

3.  By  encouraging  the  maintenance  of  a  private  armor-making  capacity  in  excess  of  the  ordinary 
requirements  of  the  Government,  an  important  reserve  factor  in  case  of  need  is  assured. 


To  Sum  Up 


No  matter  what  may  be  said  on  these  or  other  less  important  points, 
We  oflFer  to  make  armor  for  the  United  States — 

Of  a  quality  to  be  determined  by  the  Navy  Department,  and 
At  a  price  to  be  fixed  by  the  Federal  Trade  Commission. 

Why  then  waste  $11,000,000  of  the  people's  money — 

When  the  lessons  of  the  war  are  still  to  be  learned ; 

When  Government  expenses  are  already  so  enormous;  and 

When  no  real  inquiry  has  been  made  to  ascertain  whether  or  not  the  Government 
would  not  actually  lose  money  through  a  Government  plant. 

We  feel  that  our  case  is  a  sound  one. 
At  any  rate  we  have  presented  to  the 
Government  as  fair  and  businessUke  a 
proposition  as  we  know  how  to  phrase. 


Bethlehem  Steel  Company 


CHAS.  M.  SCHWAB.  Chairman 
EUGENE  G.  GRACE,  President 


The  President 


of  the 


Bethlehem  Steel 


Co 


mpany 


Appeals  to  Congress 
For  a  Square  Deal 


I  will  challenge  anybody  to  say  that  any  represen- 
tatives of  the  Bethlehem  Steel  Company  have  ever 
been  in  Washington  attempting  to  influence 


From  oral  testimony  of  Eugene  G.  Grace,  President  of 
the  Bethlehem  Steel  Company,  before  Committee  on 
Naval  Affairs,  House  of  Representatives,  Marth  22, 1916 


The  President   of  the  Bethlehem    Steel    Company 
Appeals    to    Congress    for    a    Square    Deal 


legislation  as  to  the  size  of  naval  or  military  program. 
That  is  not  our  business. 

"Our  business  is  to  serve  the  United  States  Government  just  as 
they  elect  what  they  want  to  buy;  but  I  will  challenge  anybody  to 
ever  say  that  we  were  down  here  lobbying  and  saying,  'We  wish 
you  would  build  three  battleships  this  year  instead  of  two,  so  that 
we  can  get  more  business.' 

"I  am  getting  sick  and  tired  of  hearing  and  having  inferences  put 
out  against  us  here  in  Washington,  that  by  taking  the  plants 
away  from  private  capital  they  will  destroy  one  of  the  largest 
incentives  for  us  to  go  into  war  with  some  foreign  country. 

"It  is  the  most  absurd  and  poppy-cock  thing  I  have  ever  heard  of 
to  think  that,  as  citizens  of  the  United  States,  because  we  have 
investments  made  in  ordnance  plants,  we  would  advocate  this 
country  going  into  war  so  we  could  get  business.  In  times  of 
peace  we  have  never  attempted  to  influence  the  size  of  the 
programs  which  have  come  out  of  the  National  Congress. 

"That  is  your  business,  gentlemen,  and  not  ours.  We  are  here  to 
serve  you  when  you  have  decided  what  you  want.  Please  do  not 
cast  any  such  reflections  on  us. 

"It  is  unfair. 

"If  you  will  go  through  the  whole  history  of  the  armor- 
plate  business  of  the  United  States  Government,  you 
will  find  that  it  has  always  enjoyed  a  lower  price  than 
any  big  naval  power  on  the  other  side  has  ever  enjoyed. 

"I  think  it  is  admitted  that  the  United  States  to-day  is  getting  the 


From  oral  testimony  of  Eugene  G.  Grace,  President  of 
the  Bethlehem  Steel  Company,  before  Committee  on 
Naval  Affairs,  House  of  Representatives,  March  22, 1916 


10 


The  President   of  the  Bethlehem    Steel    Company 
Appeals    to    Congress    for    a    Square    Deal 


best   armor  in   the  world.     I  have  never   seen   that   statement 
controverted. 

"Our  friends  in  the  Senate  have  never  controverted  it  and  the 
Navy  Department  has  never  controverted  it. 

"I  know  in  our  competitive  tests  we  are  called  upon  to  meet  severer 
specifications  for  supplying  this  country  with  armor  than  exist 
in  any  country  of  the  world. 

"What  has  been  the  policy  of  England,  France,  and  Germany — the 
people  who  have  built  up  and  make  a  study  of  militarism  all  their 
lives  ? 

"It  has  been  their  policy  to  work  with  private  capital  and  to 
assist  it. 


(6 


» 


The  result  comes  out  very  clearly,  that  the  Kaiser  would  not  be 
in  his  present  position  to-day  if  he  had  not  worked  hand  in  hand 
with  private  capital  invested  in  ordnance  manufacturing  plants 
in  his  country. 

"Do  not  put  us  out  of  business.  We  only  want  to  live  and  live 
fairly. 

"Take  your  own  Government  body,  the  Federal  Trade  Commission, 
that  has  been  created  for  the  pi«*pose,  and  let  them  investigate 
our  conditions;  let  them  say  what  is  right  and  proper. 

"Do  not  put  us  out  of  business  when  you  have  to-day  this  ambitious 
program  before  you. 

"We  have  created  a  capacity  one-third  greater  than  you  need. 

"Do  not  put  US  out  of  business.  If  you  will  show  any 
one  place  in  our  records  where  this  business  has  not 


From  oral  testimony  of  Eugene  G.  Grace,  President  of 
the  Bethlehem  Steel  Company,  before  Committee  on 
Naval  Affairs,  House  of  Representatives,  March  22, 1916 

11 


The  President   of  the  Bethlehem    Steel   Company 
Appeals    to    Congress    for    a    Square    Deal 


been  an  open  book  continuously,  as  it  must  have  been, 
I  will  not  make  that  request. 

'^Take  the  speeches  over  in  the  Senate,  when  somebody  said  there 
had  been  no  information  developed  in  all  the  investigations 
which  have  been  made. 

^'There  must  have  been  information  developed,  or  you  would  have 
had  a  Government  armor-plate  plant  a  long  while  before  this. 

''It  has  been  continually  investigated,  and  if  they  had  found 
anything  that  was  wrong  you  would  have  had  your  armor-plate 
plant  before  this  time. 

''What  has  been  the  situation  ? 

"They  have  investigated  and  investigated,  and  have 
found  nothing  wrong,  nothing  except  merit  in  our 
side  of  the  case;  and — 

If  there  ever  was  a  case  decided  or  a  case  that  ought 
to  be  decided  on  its  merits,  it  is  this  one,  and  if  decided 
on  its  merits  we  have  no  fears." 


From  orcU  testimony  of  Eugene  G.  Graue,  President  of 
the  Bethlehem  Steel  Company,  before  Committee  on 
Naval  Affairs,  House  of  Representatives,  March  22, 1916 


Issued  by 

Bethlehem  Steel  Company 
South  Bethlehem,  Pa. 


12 


A  PROPOSED  WASTE 


of 


$11,000,000 

To  Build  A  Government 
Armor  Plant 


A  Series  of  Statements' t^  Congress 

and  the  Puhlic  :  ]' '- .- ': ', 'j  '''• '  •'''- 

Issued  by 

Bethlehem  Steel  Company 

South  Bethlehem,  Pa. 


13 


Our  Position 


To  Members  of  Congress  and  the  Public: 

The  Senate  has  passed  a  bill  to  construct  an  armor  manu- 
facturing plant  at  a  cost  of  $11,000,000  of  the  public's 
money. 

The  measure  is  now  pending  before  the  House. 

The  Bethlehem  Steel  Company  has  manufactured  eu'mor  for 
the  United  States  Government  for  twenty-nine  years. 

This  Company  recognizes  its  obligation  in  a  matter  affecting 
both  national  defence  and  national  economy,  to  place  its  advice 
and  experience  at  the  disposal  of  the  nation  of  which  it  is  a 
citizen. 

The  Company  has  a  duty  to  its  stockholders  to  seek  to 
conserve,  if  possible,  an  investment  of  over  $7,000,000  in  its  armor 
plant — an  investment  made  at  the  behest  of  the  Government, 
and  which  would  be  rendered  valueless  if  a  Government  plant 
should  be  built. 

This  question  should  of  course  be  considered  in  the  broadest 
way;  not  with  special  regard  for  the  Bethlehem  Steel  Company,' 
or  any  other  private  interest,   but  with  supreme  regard. for 
adequate  national  defense  and  sound  pubhc  policy. 

In  order  that  all  concerned  may  have  the  clearest,  most 
concrete  and  definite  information  this  Company  can  give  on  this 
question,  so  important  both  to  the  nation  and  to  itself,  the 
Bethlehem  Steel  Company  is  issuing  a  series  of  statements  to 
Congress. 

Twelve  of  those  statements  are  reprinted  herewith.  They 
set  forth  certain  essential  facts. 

Briefly,  our  position  is  that  we  have  charged  the  Government 
a  low  price  for  armor  in  the  past,  and  have  derived  little  profit 
from  that  branch  of  our  business. 

We  are  so  certain  of  this,  and  so  certain  that  we  have  done  and 
can  do  better  for  the  Government  than  it  can  do  for  itself,  that 
we  hav^  offered  for  the  future  to  accept  any  price  which  the 
Federal  Tra^e  Commission  shall  decide  to  be  fair  alike  to  the 
Government  and  to  ourselves. 


Bethlehem  Steel  Company 


South  Bethlehem,  Pa. 
April  19,  1916. 


CHAS.  M.  SCHWAB,  Chairman 
EUGENE  G.  GRACE,  President 


14 


No.  1 


■  0       »  •    *  , 


Why  should  GovernmeM  Money 
be  spent  for  an  Armor  Factory? 

To  the  Members  of  Congress:  ^^^^^  ^^'  ^^^^ 

The  Senate  has  passed  a  bill  to  spend  $11,000,000  of  the  public's  money  to  build  an  armor 
plant.    The  measure  is  now  before  the  House  of  Representatives. 

There  can  be  only  two  possible  reasons  for  such  an  expenditure: 

First        That  existing  private  armor  plants  have  insufficient  capacity  to  supply  the  needs  of  the  country;  or 

Second  That  a  Government  plant  would  produce  armor  at  a  lower  price  than  must  be  paid  to  private 
manufacturers. 

The  Bethlehem  Steel  Company  maintains  that  neither  of  these  reasons  prevails:    Because 

First  Capacity.  The  three  existing  private  armor  plants,  which  are  admittedly  efficient,  have  a  capacity 
of  32,000  tons  a  year.  The  estimated  needs  of  the  Navy  for  the  next  five  years  will  call  for  only 
24,000  tons  a  year — not  enough  to  absorb  the  possible  output  of  existing  plants. 

Second  Price.  The  Bethlehem  Steel  Company  has  offered  to  manufacture  one-third,  or  such  additional 
quantity  as  may  be  awarded  to  it,  of  the  armor-plate  required  for  the  contemplated  five-year  naval 
program,  at  a  price  of  $395  for  side  armor,  as  compared  with  the  price  of  $425  now  obtaining.  The 
proposed  price  is  lower  than  has  been  paid  by  the  Government  for  more  than  ten  years. 

If  the  foregoing  price  is  not  satisfactory,  we  will  agree  to  permit  any  well-known  firm  of  chartered 
public  accountants  or  the  Federal  Trade  Commission  to  inventory  our  plant  and  make  careful 
estimates  of  the  cost  of  manufacture;  with  that  data  in  hand  we  will  meet  with  the  Secretary  of  the 
Navy  and  guarantee  to  manufacture  armor  at  a  price  which  will  be  itself  quite  as  low  as  the  lowest 
price  at  which  the  Governiiient  could  possibly  make  it,  taking  into  account  all  proper  charges. 

The  Senate  Bill  contemplates  a  plant  to  make  20,000  tons  a  year,  leaving  only  4,000  tons  above 
estimated  needs  to  be  made  in  private  plants  having  32,000  tons  capacity  and  useless  for  any 
other  purpose.  The  effect  of  building  a  government  plant  will  be  to  kill  the  private  industry: 
there  would  not  be  enough  work  for  both  Government  and  private  plants. 

Before  the  Senate  Committee  on  Naval  Affairs  on  January  25,  1916,  Rear-Admiral  Strauss,  Chief 
of  the  Naval  Bureau  of  Ordnance,  gave  this  testimony: 

Suestion  by  Senator  Chilton:    Admiral,  what  are  the  advantages,  if  any,  to  the  Grovemment  in  having  three  or  more  privately  run  plants,  if 
te  Government  could  get  its  armor  plate  at  a  fair  figure? 
Admiral  Strauss:    There  is  no  doubt  that  having  munition  plants  of  any  sort  actually  being  operated  in  the  country  is  a  valuable  asset. 
Senator  Chilton:    Would  it  be  on  the  whole  better  for  this  Government  to  have  privately  run  plants,  if  they  would  furnish  armor  at  a  fair  profit? 
Admiral  Strauss:     If  the  private  firms^  will  furnish  armor  at  a  fair  profit  and  will  continue  to  do  so  under  all  conditions,  I  see  no  especial 
advantage  to  the  Government  in  going  into  the  business.  ■ 

Senator  Pittman:    Admiral,  is  it  only  a  question  of  price;  is  that  the  only  queation  that  ia  disturbing  this  Ciovemment? 
Admiral  Strauss:    I  think  so. 

Existing  plants  are  ample  for  all  requirements;  the  price  proposition  which  has  been  made  assures 
to  the  Government  every  protection. 

We  therefore  submit  that  the  proposed  plan  is  wasteful  as  an  expenditure  and  unwise  as  a  policy. 

CHAS.  M.  SCHWAB.  Chairman  RptVlltf^lll^tn    Ste#^l    CnmnaniT 

EUGENE  G.  GRACE.  Preaident  OeiJlieiiem  ^ICCl  ^^ODipaiiy 

15 


No.  2 


Arnior  Manufacture-Private  or  by 
Govemment-A  Question  of  Price 


To  the  Members  of  Congress: 


March  28,  1916 


The  sole  question  involved  in  the  scheme  to  spend  $11,000,000  to  build  a  Government  armor 
factory — and  supplant  the  three  existing  private  plants — is  whether  by  such  method  the 
people  will  save  money. 

Rear-Admiral  Strauss,  Chief  of  the  Naval  Bureau  of  Ordnance,  said,  at  a  hearing  before  the  Senate 
Committee  on  Naval  Affairs  on  January  25: 

**  If  the  private  firms  will  furnish  armor  at  a  fair  profit  and  will  continue  to  do  so  under  all 
conditions,  I  see  no  especial  advantage  to  the  Government  in  going  into  the  business.** 

There  are  several  reasons  why  a  Government  plant  would  reahze  no  advantage  in  price,  namely: 

First  The  United  States  is  to-day  paying  $425  a  ton  for  armor,  an  amount  substantially  lower  than 
is  paid  by  Japan,  Austria,  Germany,  England,  or  France. 

England  buys  ita  arnior  from  five  prirately  owned  plants,  and  is  no-w  paying  $503  a  ton.  Germany  has  two 
privately  owned  plants,  and  is  paying  9490  a  ton.  Japan  is  the  only  country  with  a  gOTernment  plant,  and  yet 
armor  costs  her  9490  a  ton. 

The  specifications  in  the  United  States  are  much  more  rigid  and  the  wages  paid  are  very  much  higher  than  those 
preTailing  in  any  foreign  country. 

Second  We  now  offer  to  make  armor  plate  for  the  United  States  Government  at  $395  a  ton — a  reduction  of 
$30  a  ton,  in  spite  of  the  fact  that  steel  prices  are  continually  going  up,  and  are  to-day  much  higher 
than  for  many  years. 

The  proposed  pricw  is  less  than  has  been  paid  for  armor  by  the  United  States  in  ten  years,  and  we  agree  to  accept 
this  lower  price  for  the  ne»t  fiye  years. 

Since  the  War  began  we  have  been  able  to  get  in  Europe  almost  any  price  we  chose  to  ask  for  ordnance.  We 
have  during  that  period  made  no  addition  whatever  to  the  selling  price  to  the  United  States  Government  of  any  of 
the  ordnance  products  which  we  manufacture. 

Third  If  the  foregoing  price  is  not  satisfactory,  we  will  agree  to  permit  any  well-known  firm  of  chartered 
public  accountants  or  the  Federal  Trade  Commission  to  inventory  our  plant  and  make  careful 
estimates  of  the  cost  of  manufacture;  with  that  data  in  hand  we  will  meet  with  the  Secretary  of  the 
Navy  and  guarantee  to  manufacture  armor  at  a  price  which  will  be  itself  quite  as  low  as  the  lowest 
price  at  which  the  Government  could  possibly  make  it,  taking  into  account  all  proper  charges. 

We  make  the  foregoing  proposition,  rather  than  have  our  plant  rendered  useless. 

We  have  invested  over  $7,000,000  in  that  plant,  as  inventoried  to-day,  not  taking  into  account 
large  sums — certainly  $2,000,000 — expended  for  plant  and  equipment  abandoned  because  of 
becoming  obsolete. 

Our  armor  plant  is  useless  for  any  other  purpose.  The  United  States  is  our  only  customer  and  if 
that  customer  is  lost  the  plant  becomes  valueless. 

Our  offer  in  effect  is  to  make  armor  for  the  United  States  at  a  price  the  Government 
itself  shall  name  as  fair. 


CHAS.  M.  SCHWAB.  Chairman 
EUGENE  G.  GRACE,  President 


Bethlehem  Steel  Company 


16 


No^3 

Is  this  the  Time  to  Start  a 
Government  Armor  Plant? 

To  the  Members  of  Congress:  ^'''''^  ^^'  ^^^^ 

It  would  require  at  least  three  years  to  build  a  plant  ready  to  produce  armor  for  battleships. 

At  a  hearing  before  the  Senate  Committee  on  Naval  Affairs  on  January  25,  1916,  Rear-Admiral 
Strauss,  Chief  of  the  Naval  Bureau  of  Ordnance,  said: 

"We  estimated  vre  'would  have  the  plant  completed  in  three  years  from  the  time  ■we  -were  authorized  to  construct 
it.  That  estimate  was  made  aliout  a  year  ago,  and  undoubtedly  now  the  time  would  have  to  be  insreased  and  the 
cost  would  have  to  be  increased  if  the  present  prices  and  demand  for  all  these  materials  remain  as  at  present." 

There  is  reason  for  very  dehberate  consideration  of  the  proposal  to  build  a  Government  armor 
plant;  Because: 

First  A.  world  war  is  on.  That  war  has  already  taught  many  important  military  lessons.  Its  teachings 
as  to  naval  warfare  remain  to  be  seen. 

It  may  be  that  swift  battle  cruisers  wiU  prove  more  effective  than  dreadnoufhts;  if  so,  only  onc-thlrd  of  tit* 
armor  now  estimated  will  be  required.    Other  naval  lessons  of  this  war  nuiy  be  equally  important. 

Second  The  lessons  of  this  war  will  surely  become  clear  before  the  proposed  Government  plsmt  could 
be  ready.  By  the  time  it  was  ready,  the  problem  it  was  created  to  solve  might  have  completely 
changed. 

The  armor  estimates  for  the  next  five  years  call  for  24,000  tons  a  year.  If  battle  cruisers  supplant  dreadnoughts, 
armor  for  the  same  number  of  ship*  eould  be  supplied  by  8,000  or  9,000  tons  a  year.  Existing  plants  have  a  capacity 
of  32,000  tons  a  year. 

Existing  armor  plants  represent  an  actual  investment  of  upwards  of  $20,000,000.  These  plants 
are  useless  for  any  other  purpose  than  making  armor.  The  American  Government  is  their  only 
customer,  and  these  plants  came  into  existence  solely  to  supply  the  needs  of  the  American 
Government. 

The  Senate  Bill  to  duplicate — and  render  valueless,  these  existing  facilities  would  cost  the  people 
at  least  the  proposed  $11,000,000  appropriation. 

If  the  Government  plant  is  completed,  assuming  that  even  its  capacity  will  then  be  required, 
there  will  be  no  promise  of  effecting  economies  or  obtaining  results  which  cannot  be  realized 
without  building  a  Government  plant. 

Existing  plants  can  supply  every  need  of  the  country  for  armor  for  at  least  five  years  to  come,  and 
they  will  supply  it  at  whatever  price  the  Government  itself  shall  name  as  fair. 

At  a  time  when  every  problem  of  warfare  is  in  the  melting  pot,  when  Government  expenditures 
are  necessarily  so  large,  when  new  and  added  taxes  are  under  consideration: — 

Is  it  wise  to  spend  $11,000,000,  when  by  such  expenditure  no  saving  can  be  realized 
which  may  not  now,  and  with  existing  faciUties,  be  guaranteed  to  the  people? 


^I^EN'S^I'^^i'p^:-:  Bethlehem  Steel  Company 

17 


No.  4 

Bethlehem  Steel  Profits  and 
Policies  in  Armor  Contracts 

To  the  Members  of  Congress:  ^P^  ^»  ^^^^ 

The  Bethlehem  Steel  Company  is  solicitous  that  its  position  with  reference  to  armor  contracts 
with  the  United  States  Government  be  cleeirly  understood.    Essential  facts  are: 

First  We  are  urging  no  plan  of  preparedness.  We  have  advocated  no  policy  involving  increased 
expenditures  by  the  Government  for  £uiy  purpose. 

We  are  attMnptiiic  to  show.  In  the  frankeet  and  moat  open  manner,  that  it  irould  be  onneceaaary  and  unwiae    , 
for  the  Nation  to  apend  911fOOO,000  to  build  a  Government  armor  plant,  becauaet 

EiUting  facilitiea  can  aapply  every  need,  and. 

The  GoTemment  can  buy  armor  at  lea«t  a»  cheaply  aa  it  can  manufacture  it  for  itaelf. 

Second  If  the  United  States  should  become  involved  in  war  or  threatened  war,  the  Government  of  this 
country  can  have  any  product  we  manufacture — armor  plate  or  anything  else — at  any  price  it 
chooses  to  pay;  and  under  such  circumstances,  and  regardless  of  price,  our  entire  plant  will  run 
24  hours  a  day  with  every  pound  of  energy  behind  it. 

Third  It  has  been  stated  that  this  Company  has  realized  enormous  profits  from  the  manufacture  of 
armor  plate.   The  fact  is  that  armor  is  the  least  profitable  article  we  manufacture. 

In  our  armor  plant — which  ia  oaeleaa  for  any  other  purpoae — we  have  invested  $7,100,000. 

That  aame  amount  of  money  inveated  in  a  ateel  rolling  mill  would  have  earned  profita  of  $1,400,000  a  year. 

Yet«  that  inveatment  in  armor  plant  haa  produced  only  average  annual  groaa  receipta  of  $1,418,993 

IN  OTHER  WORDS,  THE  SAME  AMOUNT  INVESTED  IN  A  COMMERCIAL  PLANT  WOULD  HAVE 
PRODUCED  AS  MUCH  PROFIT  AS  THE  TOTAL  RECEIPTS  (COVERING  EXPENSES  AND  PROFIT) 
FOR  ARMOR  SUPPUEO  TO  THE  GOVERNMENT. 

Fourth    The  profits  realized  by  this  Company  in  1915  were  not  from  armor  plate. 

Our  total  aalea  in  1915  were  about  $200,000,000,  of  which  the  groaa  amount  received  for  armor  plate  amounted 
to  but  $3,000,000 — not  two  per  cent  of  our  total  buaineaa. 

At  the  present  time  we  can  obtain  in  Europe  almost  any  price  we  choose  to  ask  for  our  products; 
but  we  have  not  since  the  war  began  raised  the  price  for  any  ordnance  products  to  the 
American  Government. 

We  now  ofiFer  to  reduce  the  price  of  armor  plate  for  the  United  States  from  $425  to  $395  a  ton. 
The  price  paid  now — $425  a  ton — ^is  less  than  that  paid  by  any  great  naval  power. 

It  is  said  that  if  our  offer  is  accepted,  and  the  Government  plant  not  built,  the  price  of  armor 
will  soon  begin  "soaring."  That  there  is  no  danger  of  any  such  contingency,  and  as  an  earnest 
of  our  poUcy — 

We  ivill  agree  to  make  armor  at  the  reduced  price  named,  for  at  least  five  years;  or 

We  will  agree  for  an  indefinite  period  to  make  armor  at  any  price  which  the  Federal 
Trade  Commission  may  name  as  fair.^ 

^^  g'^X^SS:  Bethlehem  Steel  Company 

18 


No.  5 

Is  Government  Manufacture  of 
Armor  for  Battleships  Wise? 

To  the  Members  of  Congress:  ^^^  ^»  ^^^^ 

Armor  plate  for  our  battleships  is  a  vital  factor  in  national  defense.  It  is  supremely  important 
that  its  quality  be  the  highest  obtainable. 

All  the  great  naval  powers  of  the  world  (except  Japan,  where  there  never  was  a  private 
armor  industry)  have  found  it  to  their  interest  to  utilize  private  rather  than  Govern- 
ment industries  for  this  important  product. 

If  the  Government  utilizes  private  plants  to  make  its  armor,  it  can  exact  conditions  as  to  quality 
and  obtain  the  benefit  of  economies,  difficult  if  not  impossible  to  realize  in  Government  manu- 
facture itself.    Because — 

First  Goverament  manufacture  means  one  sub-department  of  the  Government  contracting  with 
smother,  with  no  efficient  means  to  enforce  contracts  either  £is  regards  time  of  delivery  or  quality 
of  material. 

There  -would  under  GoTemment  manufacture  be  a  natural  presanre  and  inclination  to  avoid  the  cost  and  delay 
of  replacement  of  armor  failing  to  meet  exacting  apecifioationa,  which,  if  purchased  of  private  ooncems,  would 
be  rejected  without  hesitation. 

A  few  years  ago  the  Bethlehem  Steel  Company  lost  600  tons  of  armor — ^worth  $255,000 — because  it  could  not 
meet  the  rigorous  tests.  These  are  rislu  of  manufacture  which  we  maintain  It  is  wiser  to  have  private  capital 
take  than  the  Government. 

Second    It  is  more  economical  to  operate  an  armor  plant  in  connection  with  a  commercial  steel  plant. 

"The  establishment  and  operation  of  an  armor  plant  unconnected  with  other  works  would  without  doubt  Involve 
additional  costs  not  Included  in  the  development  of  existing  plants." — From  Report  in  1906  to  Secretary  of  the 
Navy  by  Board  of  Naval  Officers  of  which  Capt.  Kossuth  Nilea  was  Chairman. 

Third      In  making  armor,  necessarily  a  substantial  amount  of  the  product  is  rejected  as  scrap. 

In  a  private  plant  conducting  other  operations  the  discarded  material  can  be  saved;  a  Government  plant 
would  have  to  throw  it  away  or  enter  into  the  business  of  selling  scrap  armor  steel. 

Two  facts  stand  out — 

First  Armor  privately  made  and  subjected  to  rigid  Government  inspection  and  tests  is  certain  to  be  of 
the  highest  grade;  and 

Second    Private  industry  can  effect  economies  impossible  in  a  Government  plant. 

The  United  States  have  available  three  private  armor  plants,  developed  for  the  use  of  the 
Government  and  for  no  other  purpose. 

We  oflfer  to  place  all  the  cards  on  the  table — to  open  oiu*  books  to  the  Federal  Trade 
Commission,  and  to  put  our  experience,  our  facilities,  and  our  economies  at  the 
service  of  the  Nation  upon  such  terms  as  the  Government  itself  shall  name  as  fair. 

CHAS.  M.  SCHWAB.  Chairman  RptVllpllPni    Sfppl   rOfnYlflllV 

EUGENE  G.  GRACE,  President  OeilUeiieill  ^^leCl  V^OUipanj 

19 


No.  6 

Should  the  Government  Destroy 
Private  Armor-making  Industries? 

To  (he  Members  of  Congress:  ^P^  S'  ^^^^ 

In  conducting  the  hearings  recently  held  to  detennine  the  cost  of  manufacturing  armor,  Senator 
TiUman,  Chairman  of  the  Senate  Committee  on  Naval  Affairs,  addressing  the  Vice-President 
of  the  Mid  vale  Steel  &  Ordnance  Company,  said: 

"If  the  Grovemment  enters  into  its  own  armor  manufacture  itself,  it  will  destroy  your  business  in 
that  respect  at  least." 

The  three  armor  plants  in  this  country  came  into  existence  to  serve  the  United  States  Govern- 
ment, and  for  that  purpose  alone.  The  Bethlehem  Steel  Company  invested  over  $7,000,000 
to  this  end. 

Reporting  to  Congress,  Hon.  H.  A.  Herbert,  then  Secretary  of  the  Navy,  said  m  a  communication 

dated  December  31,  1896: 

**The  two  annor  eontraeton,  the  Bethlehem  Iron  Company  and  the  Carnegie  Steel  Company,  each  inveated 

a  large  amount  of  money  in  the  plant  neceaaary  to  manufacture  armor It  ia  alao  to  be  remembered 

that  they  both  entered  upon  the  buaineaa  at  the  requeat  of  the  Navy  Department." 

Is  it  wise — ^is  it  fair — ^for  the  Government  to  destroy  a  private  industry  brought  into 
existence  to  serve  the  Government,  unless  for  reasons  of  compelling  force?  We  main- 
tain that  such  reasons  do  not  exist. 

It  is  said  that  private  armor  makers  have  charged  exorbitant  prices. 

The  fact  is  that  the  United  States  has  for  twenty  years  paid  less  for  armor  than  has  been  paid  by 
any  other  great  naval  power. 

Figures  ofiBcially  compiled  for  the  Senate  Committee  on  Naval  Affairs  from  the  Naval  Year  Book 
show  that  under  conditions  prevailingjust  before  the  present  European  war,  the  chief  naval  powers 
were  paying  these  prices  for  armor:  England,  $503  per  ton;  France,  $460;  Germany,  $490;  Japan, 
$490;  United  States,  $425. 

Reporting  to  the  Secretary  of  the  Navy  in  1906,  a  Committee  of  Naval  OflScers  headed  by  Capt. 
Kossuth  Niles,  said: 

**In  1896  the  prleea  in  thia  eonntry  irere  eloaely  on  a  par  irith  thoae  abroad.   On  all  other  contract*  (since  that  time) 
thia  country  haa  paid  diatinctly  leaa  than  haa  been  paid  in  any  foreign  countriea  for  armor  of  equal  quality." 

Senator  Tillman,  Chairman  of  the  Senate  Committee  on  Naval  Affairs,  a  strong  advocate  of  a 
Government  plant,  in  a  public  hearing  on  November  27,  1914,  himself  said: 

"It  would  be  very  unfortunate  for  the  [Midvale]  company  as  well  as  for  ourselves  if  we  [meaning 
the  Government]  were  to  manufacture  our  own  armor,  because  it  would  be  much  better  if  we 
should  have  the  manufacturers  supply  the  Government  at  a  reasonable  price." 

To  fulfill  to  a  greater  degree  the  conditions  suggested  by  Senator  Tilhnan,  we  have  offered  to 
reduce  the  price  of  armor  by  $30  a  ton  below  the  price  now  obtaining. 

The  Secretary  of  the  Navy  has  suggested  that  if  this  new  price  is  accepted  it  will  not  be  long 
before  the  price  is  once  more  "soaring."   As  an  earnest  of  our  policy  with  reference  to  that  point: 

We  are  prepared  to  manufacture  armor  for  an  indefinite  period  at  any  price  which  the 
Federal  Trade  Commission  shall,  after  an  examination  of  all  the  facts,  decide  to  be  fair, 

If  this  proposition  does  not  fully  protect  the  Government  we  are  willing  to  agree 
to  any  proposition  which  will  do  so* 

^ErJ^aZ^iSSZ  Bethlehem  Steel  Company 

20 


No.  7 


Three  Misconceptions  About 
the  Bethlehem  Steel  Company 


To  (he  Members  of  Congress: 


April  7, 1916 


To  the  Members  of  Congress:  ^     » ,    ^^  v 

The  agitation  for  Government  armor  plants  in  the  United  States  appears  to  be  grounded  upon 
three  popular  misconceptions: 


Excessive 
Profits 


Selling  to 
Foreign  Countries 
at  Cheaper  Price 


First — That  the  American  Government  has  been  charged  excessive  prices 
for  armor. 

The  fact  is  that  for  twenty  years  the  United  States  has  obtained  a  higher  grade  of  armor 
and  paid  less  for  it  than  any  other  great  naval  power. 

Data  compiled  for  the  Senate  Committee  on  Naval  Affairs  showed  that  the  following  prices  were  being  paid 
for  armor,  before  the  present  war  in  Europe i  E!ngland,  $503  per  ton;  France,  $460;  Germany,  $490;  Japan,  $490; 
the  United  States,  $425. 

Wages  paid  in  the  United  States  are  Tery  much  higher  and  costs  here  would  naturally  b«  greater.  The  fact  Is  that 
the  price  iduurged  is  much  lower. 

Second — ^That  American  manufacturers  have  sold  armor  abroad  at  a  lower 
price  than  they  have  charged  the  United  States. 

The  Bethlehem  Steel  Company  has  since  1887  supplied  to  the  United  States  95,072  tons 
of  armor  at  an  average  price  of  $432.62  per  ton. 

During  the  same  period  its  aggregate  sales  to  foreign  countries  amounted  to  5,331  tons — 
about  six  per  cent  of  the  total,  and  out  of  that  amount  3,967  tons  were  sold  at  a  higher 
price  than  was  charged  in  the  United  States. 

Three  small  sample  lots — amounting  in  all  to  1,364  tons — were  supplied  to  Russia  and  Japan  at  prices  lower  than 
those  then  preyailing  in  the  United  States.  Russia  took  all  but  twenty-five  tons,  and  a  few  months  later  we  were 
able  to  sell  to  Russia  a  new  lot  at  a  higher  price  than  that  prerailing  in  the  United  States. 

Third — That  a  threat  has  been  made  to  increase  the  price  of  armor  plate 
$200  a  ton  if  a  Government  plant  was  authorized. 

The  fact  is  that  no  such  threat  has  been  made  by  this  Company  or  on  its  behalf. 

Our  Company  has  made  no  threat  of  any  kind. 

The  necessary  armor  manufacturing  capacity  for  the  needs  of  the  United  States 
Government  ahready  exists. 

Our  facilities  are  at  the  disposal  of  the  Government  upon  its  own  terms. 

Would  it  not  he  a  waste,  when  no  economy  can  be  realized,  to  spend  Government 
money  to  duplicate  facilities  already  adequate? 


Threat  to 

Increase 

Price 


CHAS.  M.  SCHWAB.  Chairman 
EUGENE  G.  GRACE,  President 


Bethlehem  Steel  Company 


21 


No.  8 

What  National  Advantage  Do 
Private  Armor  Plants  Serve? 

To  the  Members  of  Congress:  ^P"^  ^^'  ^^^^ 

THE  HON.  H.  A.  HERBERT,  then  Secretary  of  the  Navy,  reported  to  Congress  in  1896: 

*'The  present  size  and  strength  of  our  navy  is  not  so  efficient  a  factor  in 
keeping  the  public  peace  and  in  creating  respect  for  oiu*  country  abroad 
as  is  our  capacity  to  rapidly  increase  that  navy  to  any  required  extent." 

THE  PRESENT  SECRETARY  OF  THE  NAVY  says  to  Congress,  in  his  last  annual  report, 
that  one  of  the  lessons  of  the  present  war  is  that 

"We  must  enlarge  factories  in  which  munitions  can  be  manufactured, 
with  everything  in  readiness  to  increase  the  large  reserve  in  case  it 
should  be  necessary."  

The  foregoing  are  sound  doctrines.  They  have  been  found  to  be  sound  by  every 
great  nation  in  the  world. 

Yet  it  is  proposed  to  adopt  a  policy  in  building  armor,  the  vital  feature  of  a 
battleship's  equipment,  which  will  effectively  destroy  the  large  existing  armor 
manufacturing  capacity  in  this  country. 


SENATOR  TILLMAN,  while  conducting  the  recent  inquiry  into  the  cost  of  armor,  very 
accurately  stated: 

*'If  the  Government  enters  into  its  own  armor  manufacture  itself,  it  will 
destroy  your  business,  in  that  respect  at  least." 

''It  would  be  much  better  if  we  should  have  the  manufacturers  supply 
the  Government  at  a  reasonable  price." 


We  are  prepared  to  supply  armor  at  a  price  which  the   Government  itself  shall  decide 
to  be  reasonable. 

This  is  said  to  be  a  "death-bed  repentance." 

That  is  a  phrase.   What  we  propose  is  a  responsible  business  proposition  to  which  we  are  pre- 
pared to  agree  for  an  indefinite  period. 

We  want  to  protect  ourselves  against  the  loss  of  our  existing  investment,  and  at  the  same  time 
save  the  Government  an  unnecessary  expense. 

XErl^f^^i^rt  Bethlehem  Steel  Company 

22 


No.  9 

A  Mistake  in  the  Policy  of  the 
Bethlehem  Steel  Company 

To  the  Members  of  Congress:  ^P^^  ^^'  ^^^^ 

It  is  S£ud  that  manufacturers  of  armor  plate  have  "gouged"  the  country. 

This  statement  has  been  repeated  through  many  years.    It  wa8  not  true — it  is  not  true. 

The  fact  is  that  had  manufacturers  of  armor  invested  the  same  capital  in  commercial  steel  plants, 
they  would  have  reedized  as  much  profit  as  the  total  receipts  from  the  Government  for  armor 
have  amounted  to. 

The  United  States  has  for  twenty  years  obtained  the  highest  grade  of  armor  and  has  paid  a 
lower  price  for  it  than  has  any  other  great  naval  power.  (From  data  compiled  under  the  direction 
of  the  Senate  Committee  on  Naval  Affairs.) 

Armor  manufacture  has  been  and  still  is  the  least  profitable  feature  of  the  steel  business. 

The  mistake  of  the  Bethlehem  Steel  Company  has  been  that  it  kept  quiet. 

We  have  allowed  irresponsible  assertions  to  be  made  for  so  long  without  denial,  that  many 
people  now  believe  them  to  be  proven  facts. 

Committees  gsJore  have  investigated  armor  msuiufacture.  Countless  opinions  have  been  expressed, 
but  nobody  has  produced  facts  to  prove  the  sinister  claims.  Even  in  the  latest  report  on  a 
Government  armor-plate  bill,  submitted  on  February  8,  1916,  the  Senate  Conmiittee  on  Naval 
Affairs  made  this  extraordinary  finding  as  to  the  policy  of  armor  manufacturers: 

''There  was  every  evidence  of  combination  and  collusion  instead  of  competition, 
BUT  NO  PROOF.*^ 

We  are  accused  of  being  a  "monopoly."  That  is  a  word  the  American  people  don't  like.  Couple 
the  word  "monopoly"  with  a  word  suggesting  the  hardness,  the  irresistibility  of  "armor  plate,"  and 
the  very  words  themselves,  if  often  enough  linked  together,  come  to  suggest — ^Mdthout  any 
proof — the  existence  of  motives  of  selfishness  and  greed.  But  the  conclusion  is  absolutely  without 
warrant  in  fact. 

We  shall  make  the  mistake  of  silence  no  longer. 

Henceforth  we  shall  pursue  a  policy  of  publicity.  Misinformation  will  not  be 
permitted  to  go  uncorrected. 

It  is  and  has  been  the  policy  of  our  Company  to  deal  with  the  American  Government 
in  the  frankest  and  most  liberal  manner.  We  expect  henceforth  to  place  the  details 
of  all  those  relations  before  the  American  people. 

We  have  offered  to  make  armor  for  the  Government  at  any  price  the  Government  shall  name 
as  fair. 

Certainly  the  widespread  publication  of  such  an  ofiFer  is  an  effective  challenge  to  our  own  good 
faith. 

CHAS.  M.  SCHWAB,  Chairman  Rpflllrf^liPtll    Stppl   roIlinfltlV 

EUGENE  G.  GRACE,  President  DeiJUeJieill   ^JlCCl  ^OmpaOJT 

23 


No.  10 

What  Would  it  Cost  the  U.  S.  to 
Manufacture  its  Own  Armor? 

To  the  Members  of  Congress:  ^P"^  ^^'  ^^^^ 

The  whole  argument  for  a  Govermneni  armor  plant  rests  upon  the  contention  that  through 
Grovernment  manufacture  a  cheaper  price  will  be  realized. 

We  concede  that  if  we  cannot  do  better  for  the  Government  than  it  can  do  for  itself,  our 
case  fails. 

The  Secretary  of  the  Navy  in  his  Annual  Report  estimates  that  the  Government  can  make  armor  at 
$262.79  per  ton  in  a  plant  of  10,000  tons  rmming  at  full  capacity.  The  prevailing  price  is  $425 
a  ton.  He  estimates  the  difference  as  the  advantage  of  Government  over  private  manufacture. 
The  estimate  is  absolutely  fallacious. 

The  Secretary's  estimate  covers  mere  shop  work;  it  omits  many  importemt  items  which  must 
enter  into  actual  cost. 

SECRETARY   DANIELS'   ESTIMATE   MAKES   NO   PROVISION 

For  Administration  and  General  Expense, 

For  Insurance,  Taxes  and  Depreciation  of  Plant, 

For  Interest  on  Investment  and  Working  Capital. 

These  items  must  be  paid  in  one  way  or  another  by  either  Government  or  private  manufacturer. 

Secretary  Daniels'  estimate  assumes  that  the  Government  plant  will  be  run  at  full  capacity. 

The  award  of  a  contract  large  enough  to  keep  any  plant  running  full  would  make  possible  equally 
great  if  not  greater  economies  in  a  private  plant. 

We  can  and  will  manufacture  armor  at  a  price  cheaper  than  the  Government  can 
possibly  do  it. 

The  building  of  a  Government  plant — 

Would  not  reduce  the  price  of  armor  to  the  people;  but  it 

Would  reduce  the  available  capacity  for  producing  this  vital  factor  in  national  defense. 

We  are  prepared  to  produce  armor  at  the  Government's  own  price.    This  is  not  a  mere  phrase; 
it  is  a  responsible  business  proposition.  Acceptance  of  it  will  save  the  Government  money. 

^S^ENl^-l'^fE.SSZ:  Bethlehem  Steel  Company 

24 


No.  11 

What  is  the  Ultimate  Purpose 
of  a  Government  Armor  Plant? 

To  the  Members  of  Congress:  ^P^^  1^'  ^^^^ 

The  Senate  has  passed  and  the  House  is  considering  a  bill  to  appropriate  $11,000,000  of  public 
money  for  a  Government  armor  plant. 

What  is  the  real  purpose  underlying  that  measure? 
Is  it  to  punish  somebody  for  supposed  misdeeds  in  the  past? 
If  so,  what  actually  has  been  done? 

There  have  been  many  statements,  many  insinuations,  but  what  are  the  facts? 

Before  a  Government  plant  is  built,  rendering  our  plant  unnecessary,  isn't  it  worth  while  to 
make  sure  just  why  the  step  is  being  taken? 

The  Senate  Committee  on  Naval  Affairs  said: 

"As  long  as  present  conditions  continue,  the  armor  manufacturers  are  in  a  position  to  force  the  United  States 
Government,  in  the  language  of  the  highwaymen,  'to  stand  and  deliver."' 

The  House  Committee  said: 

"The  Gktvernment  finds  itself  in  such  a  position  as  to  be  forced  to  contract  for  armor  plate  at  the  price  submitted 
by  the  companies." 

Such  assertions  have  often  been  made,  but  they  will  not  stand  analysis. 

The  fact  Is  that  we  offer  to  let  the  Government's  own  agent,  the  Federal  Trade  Com- 
mission, fix  the  price.    We  agree  to  make  that  offer  good  indefinitely. 

Is  that  forcing  the  Government? 

It  is  said  that  in  making  armor  we  have  a  "monopoly."  There  are  three  manufacturers  of  armor 
and  but  one  customer. 

If  we  cannot  sell  to  the  American  Government,  for  which  our  armor  plant  was  created, 
we  have  no  business. 

The  €k>vernment  is — as  it  should  be — completely  in  control  of  the  situation. 

All  that  we  ask  is  that  before  Congress  takes  the  step  which  will  commit  this  country  to  an 
expenditure  for  a  Government  plant,  they  put  us  to  the  test  on  our  proposition,  viz.,  to 
demonstrate  that — 

We  can,  will  make  and  have  made  armor  for  the  American  people  cheaper  than  the 
Government  can  possibly  do  it  for  itself. 

I^^^^.^^^^.'^^mZ  Bethlehem  Steel  Company 

25 


No.  12 

Why  We  Offer  to  Reduce 
the  Price  of  Armor  Plate 

To  the  Members  of  Congress:  April  18, 1916 

We  have  offered  to  reduce  the  price  of  armor  to  the  United  States  from  $425  to  $395  a  ton. 
That  fact  is  cited  by  some  as  proof  positive  of  our  having  made  inordinate  profits  in  the  past. 

The  fact  is  that  armor  manufacture  island  has  been  the  least  profitable  branch  of  steel  making. 

Japan  haa  a'Govemxnent  plant.  She  pays  wages  very  much  lower  than  are  paid  in  this  country.  Her  people  are 
known  for  efficiency,  yet  the  actual  cost  of  her  armor  plate  (according  to  official  data)  is  f490  per  ton.  Is  there 
any  reason  to  suppose  the  American  Government  could  do  any  better  ? 

We  have  offered  to  reduce  our  price,  not  because  the  present  price  is  too  high. 

The  shop  cost  of  producing  armor  was  found  by  Senator  Tillman's  Committee  to  be  about  $262 
a  ton.    Those  figures  represent  our  own  experience — if  our  plant  ran  at  full  capacity. 

The  report  in  1906  of  the  Cktmmittee  of  Naval  Officers,  headed  by  Capt.'Kossuth'iNiles,  estimated  that  the  manu- 
facture of  armor  costs  ten  per  cent,  more  for  a  plant  runningTat  only  two-thirds  capacity,  and  thirty  per  cent, 
more  when  running  only  one- third  capacity. 

Senator  Tillman's  production  cost  of  $262  a  ton,  running  at  full  capacity,  did  not  include  adminis- 
trative expenses,  it  did  not  allow  any  interest  on  the  value  of  plant,  or  working  capital,  it  did  not 
provide  for  insurance,  taxes  or  depreciation.  Such  items  would  in  one  way  or  another  have  to 
be  met  by  the  Government,  just  as  much  as  by  a  private  manufacturer. 

The  Naval  estimates  call  for  24,000  tons  of  armor  per  year  for  the  next  five  years.  If  we  receive 
orders  for  8,000  tons  per  year,  we  can  run  our  plant  at  two-thirds  capacity,  and  reduce  our  price. 

In  the  past  our  plant  has  run  at  an  average  of  one-third  capacity.  That  is  why  $425  has  been  a  low 
price.  If  we  could  have  run  at  two-thirds  capacity  as  js  now  possible,  we  could  have  made  a 
reduction  then. 

To  provide  for  all  items  of  cost  with  our  plant  running  at  two-thirds  capacity,  would  make  the  total 
cost  about  $399  a  ton.  This  covers  merely  shop  cost  plus  the  carrying  charge  on  the  plant;  it 
covers  no  allowance  for  profit. 

We  offer  the  reduced  price  named,  or  we  agree  to  accept  the  findings  of  the  Federal  Trade 
Commission  as  to  what  a  fair  charge  would  be. 

Is  it  likely  that  we  would  suggest,  as  we  have  done,  an  investigation  by  the  Federal  Trade 
Conamission,  if  we  feared  their  findings  would  show  extortion  in  the  past  ? 

Our  situation  is  easily  set  forth: 

We  have  a  plant  now  built  which  cost  us  $7,000,000.    If  a  Government  plant  is  built,  ours  is 
rendered  useless  and  valueless.    The  whole  of  our  investment  will  then  be  sacrificed. 

Any  return — ^however  small — on  the  cost  of  our  plant — 

Any  payment  toward  taxes,  insurance  and  depreciation — 
Any  contribution  toward  the  administrative  expenses — 
Is  better  than  the  loss  of  the  whole  plant. 

We  can  make  armor  cheaper  than  the  Government  can  do  it.  We  want  to  save  the  Government 
a  wasteful  expense;  we  want  to  save  our  armor  plant  from  being  made  valueless  because  useless. 

CHAS.  M.  SCHWAB,  Chairman  RpflllpllPni    StPpl    romnflTIV 

EUGENE  G.  GRACE.  President  UeillieJieDl   Z^lGGl  l^ODipany 

26 


Series  2  No.  1 

The  Bethlehem  Steel  Company's 
Offer  to  the  U.  S.  Government 

To  the  Members  of  Congress:  ^^^  ^^'  ^^^^ 

Some  weeks  ago  we  issued  a  series  of  statements  to  inform  members  of  Congress  concerning 
certain  phases  of  the  proposition  to  build  a  Government  armor  plant. 

When  the  German  crisis  arose,  we  felt  that  arguments  concerning  armor  manufacture  should  be 
suspended  while  a  question  of  much  larger  national  concern  was  in  the  balance. 

That  crisis  having  happily  passed,  we  again  direct  the  attention  of  Congress  to  the  serious 
questions  involved  in  the  armor  manufacturing  issue: 

Senator  Tillman  has  publicly  stated  that  it  would  be  unfortunate  for  the  Navy  to 
manufacture  its  own  armor. 

"It  would  be  better,"  added  the  Senator,  "if  we  should  have  the  manufacturers 
supply  the  Government  at  a  reasonable  price." 

The  Bethlehem  Steel  Company  offers  for 
an  indefinite  period  to  make  armor  at  a 
price  which  the  Government  itself  shall  fix. 

Could  anything  be  more  reasonable  than  that  ? 

Can  there  be  any  "joker"  in  such  a  proposition? 

Is  not  the  widespread  publication  of  this  offer  a  challenge  to  our  own  good  faith  ? 

In  contracting  for  articles  which  the  Government  itself  makes,  orders  are  not  placed  with 
private  concerns  until  the  capacity  of  the  Government  plant  is  exhausted. 

A  Government  armor  plant  of  20,000  tons  capacity  will  more  than  supply  the  armor  for  the 
program  in  the  proposed  Naval  Appropriation  Bill. 

When  the  Government  plant  is  built,  the  private  facilities  will  therefore  become  valueless. 
They  are  of  no  use  for  any  other  purpose. 

Not  only  will  a  private  industry  then  have  been  crippled,  but  an  important  reserve  factor  in 
national  defence  will  have  been  destroyed. 

Our  proposition  is  sound  business  policy  for  ourselves ;  its  acceptance  will  avoid  a  waste 
of  a  least  $11,000,000  of  public  money. 

nN''EG':^G"RTE,"p^Ja3  Bethlehem  Steel  Company 

27 


Series  2  No.  2 

Why  We  Are  Opposing  A 
Government  Armor  Plant 

To  the  Members  of  Congress:  ^^^  ^^'  ^^^^ 

Some  people  say  that  the  very  fact  that  the  Bethlehem  Steel  Company  is  so  aggressively  fighting 
the  proposal  to  build  a  Government  armor  plant  is  conclusive  proof  that  the  Company  is  seeking 
to  assure  for  itself  the  "vast  profits'*  derived  from  private  manufacture. 

The  fact  is  that  armor  making  is  the  least  profitable  feature  of  steel  manufacture. 


*     *     • 


The  reason  we  oppose  a  Government  plant  is  very  simple.    It  is  this: 

Even  though  the  making  of  comor  is  unprofitable,  we  have  invested  over  $7,000,000 
in  our  armor  plant; 

That  plant  is  useless  for  any  other  purpose. 

It  would  be  good  business  for  us  to  make 
armor  for  the  Government  at  any  price 
over  and  above  the  actual  shop  cost, 
rather  than  sacrifice  our  entire  investment. 


We  do  not  seek  to  save  big  profits;  our  purpose  is  very  frankly  to  save  our  armor 
plant — itself  built  solely  for  the  use  of  the  Government — from  going  to  the  scrap  heap. 

TO  DO  THAT  WE  ARE  PREPARED  TO  AGREE  FOR  ANY  PERIOD  TO  ANY  TERMS 
OF  MANUFACTURE  WHICH  THE  FEDERAL  TRADE  COMMISSION  SHALL  SAY 
ABSOLUTELY  PROTECTS  THE  GOVERNMENT  OF  THE  UNITED  STATES. 


CHAS.  M.  SCHWAB.  Chairman  Rrf^tVlltf^ll^in    ^t^#»l   rniTlTlflllV 

EUGENE  G.  GRACE.  President  Uemienem   ^^ICCl  V^OUipaUJ 

i28 


Series  2  No.  3 

How  the  U.  S.  Gets  the  Best 
Armor  For  Its  Battleships 

To  the  Members  of  Congress:  ^^^  ^^»  ^^^^ 

The  armor  plate  in  our  fighting  ships  constitutes  a  vital  factor  in  national  defense. 

The  United  States  is  to-day  equipping  its  men-of-war  with  the  best  armor  plate  made  anywhere 
in  the  world — and  pays  for  it  less  than  any  other  great  naval  power. 

The  Price  The  United  States  is  to-day  paying  $425  a  ton  for  armor,  an  amount  substantially  lower  than  is 

the  U.  S.  Is       paid  by  Japan,  Austria,  Germany,  England,  or  France. 

'        '*  England  buys  ita  armor  from  five  privately  owned  planta,  and  is  now  paying  $503  a  ton.     Germany  has  two 

privately  owned  planta,  and  is  paying  9490  a  ton.    Japan  is  the  only  country  with  a  government  plant,  and  yet 
armor  coat  her  9490  a  ton. 

The  apeciflcationa  in  the  United  States  are  much  more  rigid  and  the  wages  paid  are  very  much  higher  than  thos* 
prevailing  in  any  foreign  country. 

The  Bureau  of  Ordnance  of  the  Navy,  in  a  report,  dated  June  28,  1913,  said; 

The  Quality  "The  superior  excellence  of  American  armor  is  due  to  the  fact  that  the  Bureau  of  Ordnance  has 
the  U.  S.  Is  consistently  and  persistently  demanded  from  armor  makers  the  best  armor  they  could  produce 
Getting  and  also  to  the  fact  that 

^^The  Armor  makers  have  honestly  and 
conscientiously  striven  to  produce 
THE    BEST   POSSIBLE    ARMOR;^ 

We  offer  to  continue  producing  armor — 

First        Of  a  QUALITY  to  be  determined  by  the  rigid  requirements  of  the  Navy  Department,  and 
Second    At  a  PRICE  to  be  fixed  by  the  Federal  Trade  Commission. 

The  entire  situation  is  thus  left  absolutely  in  the  control  of  the  Government. 

UNDER  SUCH  CONDITIONS,  IS  THERE  ANY  OCCASION  TO  WASTE  $11,000,000 
IN  BUILDING  A  GOVERNMENT  ARMOR  PLANT? 

i^tl^E^^.fi''^Z^Z  Bethlehem  Steel  Company 

29 


Series  2  No.  4 

Can  the  U.  S.  Government  Save 
Money  by  Making  its  Own  Armor? 

To  the  Members  of  Congress :  ^      * 

It  is  said  the  Government  can  make  armor  cheaper  than  private  manufacturers. 

Among  other  economies,  it  has  been  claimed  that  the  Government  could  utilize  naval  officers  as 
managers  and  superintendents,  and  thus  avoid  paying  the  salaries  to  experts  which  private 
corporations  must  pay. 

The  United  States  Bureau  of  Ordnance,  in  an  report  dated  June  28,  1913,  said: 

"The  success  or  the  failure  of  a  Government  armor  plant  will  depend,  in  a  great  measure,  on  the 
character  and  ability  of  the  civilian  experts  employed. 

"^^Unless  the  Goverment  is  prepared  to 
pay  large  salaries,  it  cannot  expect  to 
operate  a  successful  plant.'' 


"Processes  of  armor  manufacture,"  continued  the  Bureau  of  Ordnance,  "require  a  high  degree  of 
metallurgical  knowledge,  which  must  be  paid  for  at  a  high  rate." 

"Unless  competent  metallurgists,  open-hearth  superintendents,  carbonizing  superintendents  and 
inspectors  of  heats  are  employed,  the  quality  of  armor  produced  will  necessarily  be  below  the  stand- 
ard of  that  produced  by  private  parties  by  whom  high  salaries  are  paid." 

There  is  no  question  of  the  quality  of  armor  the  American  Government  is  now  obtaining:  it  is 
the  best  in  the  world. 

We  offer  to  continue  producing  that  quality  of  armor  under  government  supervision  at  any 
price  the  Government  itself  shall  name  as  fair. 


E^o^^^fi^^Z  Bethlehem  Steel  Company 

30 


Series  2  No.  5 

Why  Not  Face  the  Facts 
About  Armor  Competition? 

To  the  Members  of  Congress:  May  29,  1916 

The  policy  of  the  United  States  Government  for  many  years  has  made  any  real  competition  in 
armor-making  ineffective. 

The  Government  has  considered  it  good  policy  to  so  distribute  its  armor  business  as  to  maintain  a 
large  reserve  armor-making  capacity  ready  for  emergencies. 

The  Government  might  have  asked  the  three  armor  plants  for  bids  and  let  the  entire  tonnage  to 
the  lowest  bidder.    That  would  have  made  competition  effective. 

The  result  of  such  a  course  would  have  been  to  drive  two  of  the  three  manufacturers 
out  of  business,  and  leave  the  country  with  the  facilities  of  only  one  plant 
in  time  of  need. 

The  Government  in  fact  has  always  asked  for 
bids  from  the  three  manufacturers,  but 
no  matter  what  the  prices  quoted,  each 
year's  business  was  divided  among  them. 

These  are  the  results  of  that  policy: 

First         The  United  States  gets  the  best  armor  in  the  world. 

Second      It  pays  a  lower  price  than  that  paid  by  any  other  great  naval  power,  and 

Third        Without  extra  expense  it  has  available  a  large  reserve  armor  making  capacity. 

Armor  makers  serve  but  one  customer — the  Government,  just  as  a  PUBLIC  UTILITY 
serves  but  one  customer — a  community. 

The  solution  of  the  public  utility  problem  is  regulation  of  rates. 

The  solution  of  the  armor  problem  is  for  the  Government  to  fix  the  price. 

WE  VOLUNTARILY  AGREE  TO  ACCEPT  ANY  PRICE  FIXED  BY  THE  FEDERAL 
TRADE  COMMISSION. 

iZ^.''.^^^^,''^:^Z  Bethlehem  Steel  Company 

31 


Series  2  No.  6 

Aren't  the  People  Entitled 
To  Know  All  the  Facts? 

To  the  Members  of  Congress:  July  !»  1916 

In  passing  the  appropriation  of  $11,000,000  for  a  Government  armor  plant,  the  House  of 
Representatives  rejected  an  amendment  offered  by  Congressman  Butler,  as  follows: 

That  expert  chartered  accountants  shall  be  employed  to  open  a  set  of  books  which  shall  exliibit 
every  item  of  expense,  direct  and  collateral,  which  may  be  charged  ageiinst  the  preparation  of  the 
plans,  the  selection  and  purchase  of  a  site,  the  construction  and  equipment  of  the  proposed  plant 
and  the  cost  per  ton  of  the  output  for  each  month  of  the  operation  of  the  plant. 

4r 

Refusal  to  institute  an  adequate  cost  accounting 
scheme  means  that  the  people  will  never  know 
what  Government-made  armor  costs. 

The  importance  of  knowing  what  things  cost: — 

Vice-Chairman  Edward  N.  Hurley,  of  the  Federal  Trade  Commission,  speakmg  at  New  York, 
May  26,  before  the  American  Iron  and  Steel  Institute,  said: 

''Perhaps  foremost  among  these  [import€uit  questions  of  business  policy]  is  the  importance  of 
knowing  definitely  your  true  costs  of  manufacture  and  of  distribution." 

"General  demoralization  in  a  large  number  of  industries  has  been  caused  by  firms  who  cut  prices 
not  knowing  what  their  goods  actually  cost  to  manufacture." 

If  that  is  true  in  private  industry,  isn't  it  true  in  Government  industry? 

Is  it  fair  to  an  industry — ^is  it  fair  to  the  public,  for  the  Ck>vemnient  to  smother  a 
private  enterprise  presumably  to  get  a  cheaper  product,  and  then  refuse  to  know  what 
the  article  actually  does  cost? 

That  question  is  now  before  the  Senate. 

^EN^G^^^E.S:SZ  Bethlehem  Steel  Company 

32 


Series  2  No.  7 

The  Bethlehem  Steel  Company's 
Offer  to  Serve  the  United  States 

To  the  Members  of  Congress:  ^^^  ^'  ^^^^ 

At  a  time  when  the  expenses  of  the  Government  are  so  enormous — 

Isn't  it  worth  while  finding  out  the  actual  facts  before  plunging  ahead  into  an  expenditure 
of  $11,000,000  of  the  people's  money  for  a  Government  armor  plant? 

The  House  of  Representatives  has,  however,  voted  down  a  proposal  to  empower  the  Federal 
Trade  Commission  to  determine  a  fair  price  for  armor  and  allow  private  manufacturers  opportunity 
to  meet  that  price  before  the  Government  built  its  plant. 

This  was  the  proposition  turned  down  by  the  House  on  May  31,  1916: 

"The  Federal  Trade  Commissioa  is  hereby  directed,  immediately  after  the  passage  of  this  act,  and  annually  thereafter,  upoa 
the  request  of  the  Secretary  of  the  Navy,  to  investigate  and  inventory  the  armor-plate  plants  of  the  United  States,  examina 
their  books,  and  estimate  and  determine  the  aversige  full  cost  of  producing  armor  plate  at  said  plants  under  the  four  foUowiac 
oonditions,  to  wit: 

"(a)  Plants  running  at  full  capacity. 

"(b)  Plants  running  at  two-thirds  cajMcity. 

"(c)  Plants  running  at  half  capacity. 

"(d)  Plants  running  at  one-third  capacity. 

"If  the  manufacturers  of  armor  plate  shall  refuse  the  Federal  Trade  Conunission  full  opportunity  for  ezan^atlon  and 
investigation  as  above  mentioned,  the  said  appropriation  for  the  erection  of  an  armor-plate  factory  or  factories  shall  be 
immediately  available  for  that  purpose ;  but  if  such  opportunity  shall  ba  afforded  the  said  commission,  it  shall  at  once  determln« 
the  full  cost  of  producing  armor  plate  at  said  plants,  and  shall  immediately  report  to  the  Secretary  of  the  Navy  a  fair  and 
reasonable  price  the  Government  shall  pay  for  its  armor  plate. 

"Upon  the  receipt  of  such  report  the  Secretary  of  the  Navy  b  hereby  authorized  to  enter  into  a  contract  or  oontraots  for 
armor  plate  to  meet  the  needs  of  the  Government,  now  or  hereafter,  at  or  below  the  price  per  ton  so  reported  as  the  fair  price  for 
the  proportion  which  the  tonnage  awarded  bears  to  the  aggregate  capacity  of  the  plants,  and  the  appropriation  hereby  made 
for  the  erection  or  purchase  of  an  armor-plate  plant  shall  not  be  used  for  that  purpose  until  the  said  report  has  been  made 
to  the  Secretary  of  the  Navy,  and  the  manufacturers  of  armor  plate  have  failed  within  30  days  after  notice  of  such  report, 
to  accept  the  same  and  to  enter  into  a  contract  or  contracts  for  the  manufacture  of  said  armor  plate  to  provide  for  the  then 
requirements  of  the  Government,  as  specified  by  the  Secretary  of  the  Navy,  at  or  below  the  price  per  ton  so  reported  by  said 
commission." 

The  original  proposition  is  now  again  before  the  Senate. 

To  clear  up  the  whole  situation  and  put  it  on  a  basis  as  fair  and  businesslike  as  w«  know  how  to 
express  it,  we  now  make  this  offer  to  the  Government: 

The  Bethlehem  Steel  Company  will  manufacture  armor  plate  for  the  Government 
of  the  United  States  at  actual  cost  of  operation  plus  such  charges  for  overhead  expenses, 
interest  and  depreciation  as  the  Federal  Trade  Commission  may  fix.  We  will  agree  to 
this  for  such  period  as  the  Government  may  designate. 

Isn't  our  proposition  fair  and  ought  it  not  to  k«  accepted  ? 

CHAS.  M.  SCHWAB,  ChairmaH  RAtVlltf^lltf^Ttl    St^^l    PnYYITlflYlir 

EUGENE  G.  GRACE.  Preddent  UeiJlieiiem   ^51661   l^OIUpanj 


Series  2  No.  8 

Shall  the 

Nation^s  Welfare 

Wait  on  Experiments 
In  Government  Ownership? 

July  6,  1916 

To  the  Members  of  Congress: 

The  Naval  Bill  now  before  the  Senate  carries  an  appropriation  of  $11,000,000  to 
build  a  Government  armor  plant. 

The  U.  S.  already  has  Government  ship-building  yards.     This  is  what  Burton  J. 
Hendrick  says  about  them  in  World's  Work  (July) : 

"For  the  last  two  years  navy  men,  the  public,  and  the  newspapers  have  been 
crazy  for  more  ships. 

"Congress  in  the  early  part  of  1915  authorized  the  construction  of  two 
super-dreadnoughts. 

"Added  to  the  Navy  now  or  a  year  from  now,  they  would  enormously  increase 
its  fighting  strength. 

"But  .  .  .  [it]  was  determined  to  build  these  vessels  in  Government  yards. 

"One  of  these  ships  is  to  be  built  at  the  New  York  Navy  Yard.    But  the  slip 
at  that  station  is  already  occupied  by  the  New  Mexico,       Not  until  that 


34 


vessel  is  launched  can  the  keel  of  the  new  dreadnought,  authorized 
more  than  a  year  ago,  be  laid. 

"These  two  vessels,  which  the  Navy  sorely  needs,  will  probably  not  be  finished 
until  1919. 

"Had  these  ships  been  placed  in  the  hands  of  a  private  builder  both  ships 
would  now  have  been  launched  and  could  have  been  conunissioned  next  spring. 

"But the  welfare  of  the  nation   could  wait  on 

experiments  in  Government  ownership." 

*    «    * 

The  Naval  Appropriation  Bill  carries  an  appropriation  of  $11,000,000  of  public 
money  for  another  "Government  ownership  experiment" — an  armor  plant. 

We  are  seeking  to  save  from  being  supplanted  our  armor  plant — ^built  at  the  behest 
of  the  Government — in  which  we  have  invested  $7,000,000. 

We  believe  our  prices  have  been  fair  in  the  past,  and  believing  as  we  do  in  the 
fairness  of  the  Government — 


We  offer  to  make  armor  for  the  United 


States  Government  at  its  own  price 


CHAS.  M.  SCHWAB.  Chairman  Rtf»tflli*ll^in    Sftf»Al   rAmnfltlV 

EUGENE  G.  GRACE,  President  OeiJUeHem  OJ^Cl  \Amif&nj 


35 


Series  2  No.  9 

Privately  Owned  Factories 
Will  Save  the  Nation 

-Says  Howard  E.  Coffin 

Chairman  of  tlie  Committee  on  Industrial  Preparedness 
of  the  Naval  Consulting  Board 

July  8,  1916 
To  the  Members  of  Congress: 

The  danger  to  the  country  of  depending  upon  Government-owned  munition  plants 
is  pointed  out  by  Mr.  Coffin  in  World's  Work  (May).    He  says: 

"No  one  can  conceive  of  a  Government .  .  .  which  can  construct  and  mainteiin 
in  time  of  peace  a  plant  which  will  be  qualified  to  turn  out  enough  munitions 
to  supply  the  fighting  line  in  time  of  war. 

"Congressional  action  toward  the  establishment  of  Government-owned  plants 
may  be  on  a  false  basis. 

"Even  though  we  have  Government-owned  plants  ...  in  the  last  equation,  in 
any  future  war  in  which  this  country  is  engaged — 

"It  is  going  to  be  the  privately  owned  manufacturing  plants  of  this  country 
which  must  feed  the  guns  that  will  save  the  nation." 

The   average  requirements  of  armor   for   the   battleships  of  the  United  States 
have  for  many  years  been  about  10,000  tons  a  year. 

But  the  Government  has  heretofore  encouraged  three  plants  to  keep  available  a 
total  capacity  of  30,000  tons — ^ready  for  use  in  an  emergency. 

The  Naval  Bill  now  before  the  Senate  carries  an  appropriation  of  $11,000,000  to 


36 


build  a  Government  armor  plant,  making  unnecessary,  under  ordinary  conditions, 
the  existing  private  plants,  and  destroying  this  important  reserve  factor  in  national 
defense. 


Isn^t  It  Wiser— 


To  maintain  present  plants,  ample  as 
they  are,  and  let  the  Federal  Trade 
Commission  fix  the  price  at  which  armor 
shall  be  supplied — 

Rather  than  spend  $11,000,000  of 
PubKc  Money  to  build  a  Government 
plant  and  thus  destroy  an  industry 
which  the  Country  may  some  day 
sorely  need 

?  . 


cHAs.  M.  SCHWAB,  Chairman  Bethlehem  Steel  Company 

EUGENE  G.  GRACE,  President 


37 


Series  2  No.  10 

Selling  Armor  in  Europe 
Cheaper  than  in  the  U,  S. 

July  11,  1916 

To  the  Members  of  Congress: 

Mr.  Adamson  of  Georgia,  a  very  able  Congressman,  made  on  May  27tli  a  one-minute 
speech  in  the  House  of  Representatives,  favoring  a  Government  armor  plant. 

He  began  his  remarks  with  this  expression  of  sound  poHcy: 

"I  am  not  an  advocate  of  government  ownership  or  operation  of  any  of 
the  instrumentalities  of  business  in  which  private  capital  can  and  will 
engage  on  honest  and  fair  principles. 

But,    said  Mr.  Adamson,    a  Government  armor  plant  is  necessary  because  with  such  a  plant — 

"We  could  assuredly  prevent  our  armor  plate  and  other  supplies  from  costing  the 
Government  50  per  cent  more  for  our  own  use  than  our  patriotic  manufacturers 
sell  the  same  things  to  Russia,  10,000  miles  away." 

The  complete  facts  as  to  selling  to  Russia  and  other  foreign  countries  are  these: 

The  Bethlehem  Steel  Company  has  since  1887  supplied  to  the  United  States  95,072  tons  of  armor 
at  an  average  price  of  $432.62  per  ton. 

Dm*ing  the  same  period  its  sales  to  all  foreign  countries  were  5,331  tons — about  six  per  cent  of 
the  total,  and  out  of  that  amount  3,967  tons  were  sold  at  a  higher  price  than  was  charged  in 
the  United  States. 

Two  small  sample  lots — amounting  in  all  to  1,339  tons — were  supplied  to  Russia  at  $249  per 
ton — a  price  lower  than  that  then  prevailing  in  the  United  States.  But  that  happened  just 
twenty-one  years  ago. 

A  few  months  later— and  based  on  the  tests  of  the  sample  lots— we 


38 


were  able  to  sell  1,137  tons  to  Russia  at  $524  per  ton— a  price  higher 
than  we  have  ever  been  paid  by  the  United  States  Government 

With  the  exception  of  three  plates  (25  tons)  for  testing 
purposes  only  supplied  to  Japan  in  1912,— 

Not  in  twenty- one  years  has  the 
Bethlehem  Steel  Company  sold  a 
pound  of  armor  plate  to  a  foreign 
government  at  as  low  a  price  as  it 
has  received  from  the  United  States. 

Foreign  armor  plate  business  is  not  and  has  never  been  of  consequence.    The  United 
States  Government  is  virtually  the  only  customer  of  our  armor  plant. 

We  Offer- 

To  place  all  our  records  and  books  at  the  disposal  of  the  Federal  Trade 
Commission,  and — 

To  make  armor  for  the  United  States  at  any  price  the  Federal  Trade 
Commission  shall  fix. 

Could  the  Government  do  any  more — or  even  as  much — ^for  itself  with  its  own  plant  ?    If  not — 

WHY    WASTE    $11,000,000    OF    PUBLIC    MONEY    IN    BUILDING    A 
GOVERNMENT  PLANT? 

Bethlehem  Steel  Company 

CHAS.  M.  SCHWAB,  Chairman 
EUGENE  G.  GRACE,  President 


39 


Series  2  No.  11 


Some  Questions  Asked  of  the 

Bethlehem  Steel  Company 

July  12,  1916 
To  ihe  Members  oj  Congress:  * 

In  view  of  our  energetic  efforts  to  show  the  unwisdom  of  a  government  armor  plant, 
we  have  been  asked  some  pertinent  questions  t 


QUESTION  1:  IF  THE  MANUFACTURE  OF  ARMOR  IS  UNPROFITABLE,  WHY 
DO  YOU  SEEK  TO  CONTINUE  IT? 

Answer:  The  fact  is  that  armor  is  the  least  profitable  feature  of  steel 
manufacture. 

Our  armor  making  machinery  is  useless  for  any  other  purpose.  $7,000,000  of  our  investment  is 
devoted  to  armor  making  plant.  If  a  Government  plant  is  huilt,  ours  will  be  rendered  useless 
and  valueless,  and  the  whole  of  our  investment  will  be  sacrificed. 

We  are  confident  the  Govermuent  would  not  ask  us  to  make  armor  at  less  than  the  actual 
manufacturing  cost. 

Any  return,  therefore,  however  small,  on  the  cost  of  our  plant;  any  pay- 
ment toward  taxes,  insurance  and  depreciation;  any  contribution  toward 
the  administrative  expenses;  is  better  than  the  loss  of  the  whole  plant. 

QUESTION  2 :  IF  YOU  ARE  WILLING  TO  MANUFACTURE  AT  THE  GOVERNMENT'S 
OWN  PRICE,  WHY  NOT  SELL  YOUR  PLANT  TO  THE  GOVERNMENT 
AT  A  FAIR  VALUATION? 


40 


Answer:  Our  armor  plant  is  but  one  of  many  elements  in  steel  making  works, 
where  25,000  men  are  employed.  Armor  making  represents  only  about  three  per 
cent  of  our  gross  business. 

The  same  power  house  which  serves  other  plants  also  serves  the  armor  works.  The  entire  process 
of  making  armor  is  interwoven  with  our  other  steel  making  activities. 

That  is  one  method  of  economical  production  a  Government  plant  would  not  enjoy. 

But  that  fact  makes  it  physically  impossible  to  separate  the  armor  plant  from  our  works  as  a 
whole,  and  sell  the  plant  separately  to  the  Government  or  anyone  else. 

But  the  Goyernment  can  make  use  of  our  investment  without  spending  $11,000,000  of 
the  people's  money,  upon  terms  which  the  Federal  Trade  Commission  shall  find  to 
be  economical. 


In  other  words,  we  offer — without 
risk  to  the  Government^ — to  place 
our  facilities  as  completely  and 
effectively  at  the  service  of  the 
Nation  as  if  the  Government 
became  the  actual  owner. 


Bethlehem  Steel  Company 


CHAS.  M.  SCHWAB,  Chairmao 
EUGENE  G.  GRACE,  Fteudoit 


41 


Series  2  No.  12 

Why  Armor  Manufacturers 
Have  Not  Shown  Their  Books 

July  13,  1916 
To  the  Members  of  Congress: 

Congressman  Good,  addressing  the  House  of  Representatives  May  31st,  said  he  would  have 
supported  the  Butler  amendment  giving  the  Federal  Trade  Commission  power  to  establish  a 
price  for  armor  plate  (rather  than  build  a  Government  plant) — 

*'Had  these  concerns  permitted  an  answer  to  be  made  as  to  what  it  was  costing  them  to 
make  armor." 

Congressman  Good  is  under  a  misapprehension,  and  as  the  votes  of  other  members  may  have 
been  influenced  by  the  same  misapprehension,  we  give  the  facts: 

(a)  Secretary  Daniels  testified  that  one  of  the  manufacturers  sometime  ago  SENT  HIM  THEIR 
ACTUAL  COST  RECORDS  with  the  proviso  that  he  should  keep  this  information  confidential,  and 
that  he  returned  the  record  unread  because  he  felt  he  had  no  right  to  receive  confidential  information 
that  he  could  not  divulge  to  the  American  prople. 

(b)  One  of  the  manufacturers  HANDED  TO  THE  SENATE  INVESTIGATING  COMMITTEE 

a  record  of  their  costs,  certified  by  public  accountants,  but  they  were  not  willing  that  this  should 
be  spread  on  the  public  record  and  it  was,  therefore,  returned  to  them. 

(c)  We  have  offered  to  permit  an  examination  of  our  plant  and  records  by  certified  public 
accountants,  or  the  Federal  Trade  Commission. 

Is  it  conceivable  that  we  would  make  such  an  offer  if  we  had  any  fear  that  the  actual 
figures  would  show  extortion? 

Our  Position: 

We  have  no  objection  to  giving  these  details  of  costs  to  properly  constituted  authorities  for  their 
information  and  guidance.  We  do  object  to  having  them  spread  in  public  documents  where  they 
shall  be  available  to  other  manufacturers  here  and,  particularly,  to  the  foreign  manufacturers. 
We  have  never  been  able  to  get  any  data  as  to  the  cost  at  the  German,  English,  French  and  other 
plants. 

All  we  know  is  that  the  United  States  Senate  Naval  Year  Book  shows  that  all  the  great 
foreign  governments  pay  more  for  their  armor  than  does  the  United  States. 

We  would  be  very  much  interested  in  any  detailed  records  of  the  foreign  manufacturers'  costs 

42 


and  methods  of  production,  and  they  would  no  doubt  be  equally  interested  in  ours,  but  we 
have  no  desire  to  voluntarily  give  them  this  information. 

Nor  do  we  believe  it  would  be  good  policy  for  the  United  States  Government  to  force  out  such 
information  for  the  use  of  the  foreigners.  There  isn't  the  slightest  difficulty  in  obtaining  such 
data  for  the  use  of  the  United  States  Government  itself. 


We  repeat  our  offer: 


We  will  open  all  our  books  to 
the  Federal  Trade  Commission 
and  accept  any  price  for  armor 
which  the  Commission  shall  fix. 


We  believe  our  prices  in  the  past  have  been  fair.    We  make  our  offer  in  perfect  confidence  that 
complete  examination  by  the  Government's  own  agency  will  make  that  clear. 

If  we  are  right,  isn't  it  worth  while  finding  out?    Has  the  Government  anything  to  lose^ 
has  it  not  much  to  gain,  by  putting  our  offer  to  the  test? 


Bethlehem  Steel  Company 


GHAS.  M.  SCHWAB,  Chairman 
EUGENE  G.  GRACE,  President 


43 


Series  2  No.  13 


Existing  Armor  Plants  Able  to 
Obtain  Ample  Ore  in  Case  of  War 

July  14,  1916 
To  the  Members  of  Congress: 

The  Manufacturers'  Record,  of  Baltimore,  has  urged  the  adoption  of  a  Government  armor 
plant  on  the  ground  that  existing  plants  would  be  dependent  in  case  of  war  upon  Lake  Superior 
iron  ore  which  is  shipped  through  the  Soo  Canal. 

These  are  the  reasons  why  there  is  no  validity  in  this  contention: 


1.  It  takes  relatively  very  little  ore  to  make  all  the  armor  plate  required  by  the  United  States. 

2.  There  are  ample  deposits  of  ore  in  Central  Pennsylvania  to  take  care  of  all  necessities,  should  the 
Lake  Superior  supphes  be  cut  off. 

3.  If  the  Soo  Canal  is  closed,  Lake  Superior  ores  can  easily  be  brought  by  rail  from  Duluth  to 
Pittsburg,  Philadelphia  or  Bethlehem,  where  the  armor  factories  are  located. 

4.  If  these  three  cities  were  in  the  hands  of  an  enemy  in  war  time,  it  is  safe  to  say  that  we  could 
not  build  battleships  on  our  sea-coast,  so  that  armor  factories  would  then  be  of  no  avail. 


The  fact  is  that  there  is  no  possible 
strategic  weakness  in  the  present  loca- 
tion of  privately  built  armor  plants. 

There  would  be  much  greater  weakness  to  national  defense  in  having  inadequate 

44 


armor-making  capacity  in  time  of  need.  That  is  what  the  proposed  Government 
plant  threatens. 

It  is  said  that  the  Government  has  no  intention  to  destroy  existing  armor-making  plants. 

When  the  Government  contracts,  however,  for  articles  which  the  Government  itself  makes,  orders 
are  not  placed  with  private  concerns  until  the  capacity  of  the  Government  plant  is  exhausted. 

The  proposed  Government  plant  will  have  20,000  tons  capacity.    The  average  requirements  of  the 
United  States  for  uie  p  azt  twenty  years  have  been  about  10,000  tons  annually. 

Pursuant  to  the  practice  of  giving  to  the  Government  plant  all  Government  work  up  to  the 
capacity  of  the  Government  plant,  it  will  mean  that  there  will  be  no  work  for  the  private  plants 
to  do. 

A  Government  armor  plant  will  tend  to 
destroy,  through  rendering  useless,  private 
plants,  and  leave  the  nation  in  future 
years  dependent  in  time  of  emergency 
solely  upon  the  Government  factory. 


We  respectfully  submit  that  this  is  a  risk  the  nation  ought  not  to  take. 

The  wise  policy,  we  maintain,  is   to  exact  a  fair  price  and  encourage  the  existence 
of  the  maximum  armor-making  capacity  in  private  plants. 


Bethlehem  Steel  Company 


CHAS.  M.  SCHWAB,  Chairman 
EUGENE  G.  GRACE.  President 


45 


Series  2  No.  14 

What  Can  We  Learn  from  England 
About  Armor  Plate  Manufacture? 

July  15,  1916 
To  the  Members  of  Congress: 

Addressing  the  Senate  of  the  United  States  on  July  11,  Senator  B.  R.  Tillman,  Chairman  of 
the  Senate  Committee  on  Naval  Affairs,  said : 

"The  War  in  Europe  has  demonstrated  the  vital  importance  of  munitions 
plants  and  an  almost  endless  supply  of  ammunition,  shells,  and  so  forth." 

ENGLAND^S  POLICY  AND  EXPERIENCE 

England  has  the  largest  navy  in  the  world.    Her  national  existence  depends  upon  the  effectiveness 
of  that  navy. 

Mr.  Sydney  Brooks,  a  well  known  English  writer,  in  a  letter  dated  March  25,  published  in  The 
New  York  Times,  says: 

If  an  Englishman  in  my  position  were  to  speak  out  frankly  to  his  American  friends 
he  would  say — 

"For  God's  sake  don't  let  yourselves  be  caught  as  we  were  caught. 
Remember  that  modern  war  calls  upon  every  ounce  of  manufacturing 
efficiency  that  a  country  possesses.  Remember  that  you  can  raise 
volunteers,  drill  them,  and  train  them  infinitely  quicker  than  you  can 
arm  them,  and  that  this  business  of  turning  out  the  munitions  of  war  is 
one  that  cannot  be  improvised.  Remember  that  we  in  England  have 
found  a  large  number  of  private  plants  skilled  and  equipped  to 
produce  everything  that  is  needed  from  small  arms  to  howitzers  to  be 
not  merely  a  valuable  military  asset  but  absolutely  vital  to  the 
salvation  of  the  country." 

Had  we  depended  merely  on  our  Government  arsenals  with  their  slow-moving, 
unbusinesslike  methods  we  could  not  have  maintained  even  50,000  men  in  France. 

Happily  we  have  long  encouraged  private  manufacturers  to  take  up  the  production 
of  shells,  rifles,  armor  plate,  machine  guns,  and  all  the  other  innumerable  imple- 
ments of  war. 

We  have  encouraged  them,  but  we  found  in  August,  1914,  that  we  had  not 
encouraged  them  enough. 

46 


In  a  letter  published  in  the  New  York  Sun,  April  5,  Mr.  Brooks  also  said: 

We  have  in  Great  Britain,  I  believe,  five  or  six  armor  making  firms. 

The  Admiralty  experts  consult  with  them  continuously,  apportion  the  work 
among  them,  arrange  the  price — Parliament  very  wisely  never  attempts  to  meddle 
with  such  details — and  drive  the  best  bargains  they  can  in  the  interests  of  the 
nation.  With  common  sense  and  a  rational  spirit  of  give  and  take  on  both  sides 
the  system  works  admirably. 

How  should  we  have  gained  if  in  lopping  off  the  profits  of  the  armor  makers  we  had 
imperilled  the  nation?  Could  any  one  conceive  a  more  perfect  example  of  the 
penny  wise  and  pound  foolish  policy  than  one  which  in  the  name  of  economy, 
weakened  the  navy,  risked  an  irreparable  defeat  and  prevented  us  on  the  day  of 
Armageddon  from  utilizing  the  country's  industrial  resources? 

That  is  what  Mr.  Brooks  said.    The  fact  is  that  if  a  Government  armor  plant  is  built  in  the 
United  States  it  will  take  care  of  all  ordinary  requirements  of  the  Navy. 

The  private  plants  will  then  have 
been  rendered  useless,  and  a  vital 
reserve  factor  of  safety  in  national 
defense  will  have  been  destroyed. 


If  that  should  transpire  the  fact  that  our  investment  will  have  been  destroyed  will  be 
of  small  moment  in  comparison. 


Bethlehem  Steel  Company 


CHAS.  M.  SCHWAB,  Chairman 
EUGENE  G.  GRACE,  President 


47 


A  Series  of  Advertisements  Inserted  in  3257  Daily  and 
Weekly  Newspapers  Throughout  the  United   States 


A  Mistake  in  the  Policy  of 
the  Bethlehem  Steel  Company 

To  the  People: 

The  Senate  of  the  United  States  has  passed  a  bill  to  spend  $11,000,000  of  the  People's  mcney 
to  build  a  government  armor  plant.    The  measure  is  now  before  the  House  of  Representatives. 

It  is  said  that  manufacturers  of  armor  hav«  "gouged"  the  country  In  the  past,  and  that  a  government 
plant  is  necessary  to  secure  armor  more  cheaply. 

The  mistake  of  the  Bethlehem  Steel  Com.pan7lliaa  been  that  It  has  kept  quiet. 

We  have  allowed  Irresponsible  assertions  to  be  made  for  so  knogi'vithout  denial,  that  many  peopla 
nov  believe  them  to  be  proven  facts. 

We  shall  miake  the  mistake  of  silence  no  longer* 

Henceforth  ve  shall  pursue  a  policy  of  publicity.    MIdnformation  will  not  be  permitted  to  go 
onoorrected. 

It  is  and  has  been  the  policy  of  our  Company  to  |deal  with  the  American  Government  fairly 
and  squarely. 

We  shall  henceforth  place  the  details  of  our  relations  with  the  Government  before 
the  American  People* 

Hie  United  States  has  for  tventy  yean  'obtained  the  highest  grade  of  armor  and  has  paid  a  lower 
price  for  it  than  has  any  other  great  naval  power. 

f^  Vlsorea  ofBdally  eompll«d  for  the  Senat*  Commltte*  on  Naral  Affair*  from  the  Naral  Year  Book  ahoir  that 

ander  eonditiona  prerailins  Just  before  the  European  war,  the  ehlef  naral  powera  of  the  world  were  paying 
th— e  prloa*  for  armori 

EngUnd,  $503  per  ton|  France,  $460|  Germany,  $490t  Japan,  $490}  UNITED  STATES,  $425. 

A  government  plant  cannot  make  armor  any  cheaper  than  we  can  do  it;  and — 

We  are  prepared  to  manufacture  armor  at  any  price  which  the  Government  itseli 
shall  name  as  fair.  THAT  BEING  SO,  SHOULD  $11,000,000  OF  THE  PEOPLE'S 
MONEY  BE  WASTED  TO  BUILD  A  GOVERNMENT  PLANT? 

SSLSJ^'&SiZ:  Brthlchem  Steel  Company 


48 


A  Series  of  Advertisements  Inserted  in  3257  Daily  and 
Weekly  Newspapers  Throughout  the  United   States 


Why  We  Are  Opposing  A 
Government  Armor  Plant 

To  the  People: 

Some  people  say  that  the  very  fact  that  the  Bethlehem  Steel  Company  ia  so  aggresaiyely 
fighting  the  proposal  to  build  a  Government  armor  plant  is  conclusive  proof  that  the  Company 
is  seeking  to  assure  for  itself  the  "vast  profits"  derived  from  private  manufacture. 

The  fact  is  that  armor  inaking  is  the  least  profitable  feature  of  steel  manufacture. 

•       •       • 

The  reason  we  oppose  a  Government  plant  is  very  simple.    It  is  this: 

Even  though  there  b  but  Uttle  profit  in  the  making  of  armor,  we  have  invested  over 
$7,000,000  in  our  armor  plant; 

That  plant  is  useless  for  any  other  purpose;  if  a  Government  plant  is  built  the  useful- 
ness  of  our  plant  is  destroyed. 

It  would  be  good  business  for  us  to  make  armor  for  the  Govern* 
ment  at  any  price  over  and  above  the  actual  shop  <;o8t,  RATHER 
THAN  SACRIFICE  OUR  ENTIRE  INVESTMENT. 


We  do  not  seek  to  save  big  profits;  our  purpose  is  very  frankly  to  save  our  armor 
plant — ^itself  built  solely  for  the  use  of  the  Grovernment — from  going  to  the  scrap  heap. 

To  do  that^  we  are  prepared  to  agree  for  any  period  to  any  terms  of  inimnfuotur^ 
which  the  Federal  Trade  Commission  shall  say  absolutrfy  p«>teot8  the  Govefiungqi 
ef  the  United  States. 

■UGBNB  a  oRAc^  fimiiii  ofiuilebeDi  Steol  Compoiijr 


49 


A  Series  of  Advertisements  Inserted  in  3257  Daily  and 
Weekly  Newspapers  Throughout  the  United   States 


Why  Not  Face  the  Facts 
About  Armor  Competition? 

To  the  People: 

The  policy  of  the  United  States  Government  for  many  years  has  made  real  competition  in 
armor-making  ineffective. 

The  Government  might  have  asked  the  three  armor  plants  for  bids  and  let  the  entir« 
tonnage  to  the  lowest  bidder.    That  would  have  made  competition  effective. 

The  result  of  such  a  course  would  have  been  to  drive  two  of  the  three  inanu« 
facturers  out  of  business,  and  leave  the  country  with  facilities  of  only  on« 
plant  in  time  of  need. 

The  Government  in  fact  has  always  asked  for  bids  from 
the  three  manufacturers,  but  no  matter  what  the  price 
quoted,  each  yearns  business  was  divided  among  them. 

Armor  makers  serve  but  one  customer — the  Government,  just  as  a  public  utility 
serves  but  one  customer — a  community. 

The  solution  of  the  public  utihty  problem  is  regulation  of  rates. 

The  solution  of  the  armor  problem  is  for  the  Government  to  fix  the  price. 

We  voluntarily  agree  to  accept  any  price  fixed  by  the  Federal  Trade  Commission. 
Isn't  acceptance  of  that  offer  better  than  the  destruction  of  an  industry  built  solely 
to  serve  the  Government? 

SSL'S  G^'Sl^?:::^:^  BetUehem  Steel  company 


50 


A  Series  of  Advertisements  Inserted  in  3257  Daily  and 
Weekly  Newspapers  Throughout  the  United   States 


The  Bethlehem  Steel  Company's 
Offer  to  Serve  the  United  States 

At  a  time  when  the  expenses  of  the  Government  are  so  enormous — 

Isn't  it  worth  while  finding  out  the  actual  facts  before  plunging  ahead  into  an 
expenditure  of  $11,000,000  of  the  people's  money  for  a  Government  armor  plant? 

To  clear  up  the  whole  situation,  and  to  put  it  on  a  basis  as  fair  and  business-like  as 
we  know  how  to  express  it,  we  now  make  this  offer  to  the  Government: 

The  Bethlehem  Steel  Company  will  manufacture  armor  plate  for  the 
Government  of  the  United  States  at  actual  cost  of  operation  plus  such 
charges  for  overhead  expenses,  interest  and  depreciation  as  the  Federal 
Trade  Commission  may  fix.  We  will  agree  to  this  for  such  period  as 
the  Government  may  designate. 

The  House  of  Representatives  voted  down  a  proposal  to  empower  the  Federal  Trade 
Commission  to  determine  a  fair  price  for  armor,  and  allow  private  manufacturers 
opportunity  to  meet  that  price  before  the  Government  built  its  plant. 

Isn't  our  proposition  fair  and  ought  it  not  to  be  accepted  ? 

The  measure  is  now  before  the  United  States  Senate. 


SS^«l^fi.^~  BetUehem  Steel  Company 


51 


A  Series  of  Advertisements  Inserted  in  3257  Daily  and 
Weekly  Newspapers  Throughout  the  United   States 


Suppose  this  was  Your  Business! 

If  the  Government  had  asked  you  to  invest  your  money  in  a  plant  to  supply 
Government  needs;  and  after  the  plant  was  built,  and  had  become  useful  for  no 
other  purpose,  the  Government  built  a  plant  of  its  own,  making  your  plant 
useless  and  your  investment  valueless — ^would  that  seem  fair  ? 

That  is  precisely  what  Congress  is  planning  for  the  Government  to  do  with  reference 
to  our  investment  of  $7,000,000  in  an  armor  plant. 

Reporting  to  Congress,  Hon.  H.  A.  Herbert,  then  Secretary  of  the  Navy,  said  Dec^nber  31, 1896: 

"The  two  armor  contractors,  the  BetMehem  Iron  Company  and  the  Carnegie  Steel 
Company,  both  entered  upon  the  business  at  the  request  of  the  Navy  Department.** 

Is  it  wise — is  it  fair — for  the  Government  to  destroy  a  private  industry  brought  into  existence 
to  serve  the  Government,  unless  for  reasons  of  compelling  force?  To  show  that  no  such  reasons 
exist,  we  make  this  offer  to  the  United  States  Government: 

The  Bethlehem  Steel  Company  will  manufacture  armor  plate  for  the 
Government  of  the  United  States  at  actual  cost  of  operation  plus  such 
charges  for  overhead  expenses^  interest,  and  depreciation  as  the  Federal 
Trade  Commission  may  fix.  We  will  do  this  for  such  period  as  the 
Government  may  designate. 

Isn't  that  fair  P    The  question  is  now  before  the  United  States  Senate. 


S^"  o^SllS."^:::  Bethlehem  Steel  Companj 


52 


A  Series  of  Advertisements  Inserted  in  3257  Daily  and 
Weekly  Newspapers   Throughout  the  United   States 


Aren't  the  People  Entitled 
to  Know  All  the  Facts? 

The  House  of  Representatives  in  appropriating  $11,000,000  to  build  a  Govern- 
ment armor  plant,  voted  down  a  proposal  that  books  be  kept  so  the  public  could 
know  exactly  how  much  Government-made  armor  will  cost. 

Advocates  of  a  Government  plant  expect  to  get  armor  cheaper.  Why  then  refuse 
to  look  facts  in  the  face? 

We  can  and  will  make  armor  for  the  Government 
cheaper  than  it  can  do  it  for  itself— and  we  want 
to  prove  it 

If  our  offer  to  do  so  is  to  be  rejected,  aren't  the  people  entitled 
to  know  exactly  what  the  Goyemment-made  product  costs? 

That  question  is  now  before  the  Senate  of  the  United  States. 

■'*■■■   \ 

S^.^a'^S^S.  ^SSZ  Bethlehem  Steel  Company 


S3 


Fro 


m 


Eleventh  Annual  Report 
Bethlehem  Steel  Company 

For  Fiscal  Year  Ended  December  31,  1915 


With  the  recent  extraordinary  market  for  all  classes  of  steel  prod- 
ucts and  for  ships  the  various  plants  of  your  Corporation  enter 
the  year  1916  with  all  departments,  with  one  exception,  running  at 
full  capacity. 

That  exception  is  the  armor-plate  department.  Bethlehem  Steel 
Company  has  practically  completed  deliveries  to  th*  Government 
on  all  pending  armor  contracts.  Contracts  for  the  current  year 
have  not  been  awarded. 

Your  attention  is  called  to  the  fact  that  a  bill  is  pending  in  Con- 
gress and  has,  with  the  support  of  the  Secretary  of  the  Navy, 
been  recommended  for  passage  by  the  Senate  Committee  on  Naval 
Affairs,  providing  for  the  building  by  the  Government  at  an  ex- 
pense of  $11,000,000  of  an  armor  plant  with  a  capacity  of  20,000 
tons  a  year. 

This  capacity  provides  for  more  than  double  what  have  been  the 
average  actual  requirements  of  the  United  States  for  armor  over 
the  past  twenty  years,  and  if  such  a  bill  is  passed  the  value  of 
existing  armor  plants  in  this  country  will  be  virtually  destroyed. 
Bethlehem  Steel  Company  has  more  than  $7,000,000  now  invested 
in  its  plant,  devoted  to  this  use, — and  useless  for  any  other 
purpose. 

Recognizing  that,  though  the  interests  of  your  property  should  be 
carefully  conserved  by  your  officers,  on  a  matter  of  this  kind 
your  Corporation  also  has  an  important  obligation  to  the  nation 
of  which  it  is  a  citizen,  your  officers  have  appeared  before  the 
Senate  Committee  on  Naval  Aflfairs  and  urged  the  defeat  of  the 


64 


From  Eleventh  Annual  Report,  Bethlehem  Steel  Company 


pending  measure.  As  it  is  frankly  declared  that  the  sole  purpose 
of  the  proposed  enterprise  is  that  the  Government  may  secure  its 
armor  at  a  lower  price,  your  officers  have  submitted  the  following 
proposition  to  the  Federal  Government. 

We  will  agree  to  permit  any  well-known  firm  of  chartered  public 
accountants  to  inventory  our  plant  and  make  careful  estimates  of 
the  cost  of  manufacture. 

With  that  data  in  hand  we  will  meet  with  the  Secretary 
of  the  Navy  and  agree  to  manufacture  armor  at  a  price 
which  will  be  entirely  satisfactory  to  the  Secretary  of 
the  Navy  as  being  quite  low  as  the  price  at  which  the 
Government  could  possibly  manufacture  armor  on  its  own 
account,  after  taking  into  account  all  proper  charges. 

As  a  concrete  working  basis  for  such  negotiations,  Bethlehem  Steel 
Company  has  offered  to  manufacture  one-third  of  the  armor  plate 
required  for  the  contemplated  five-year  naval  program  (estimated 
at  approximately  120,000  tons),  for  a  price  of  $395  per  ton  for  side 
armor,  as  compared  with  the  price  of  $425  per  ton  now  obtaining. 

It  may  be  added  that  while  all  other  steel  prices  have  greatly 
increased,  the  foregoing  figure  at  which  we  now  offer  to  make 
armor  for  the  United  States  is  not  only  a  lower  price  than  has  been 
paid  by  the  Government  for  more  than  ten  years,  but  it  is  also  a 
substantially  lower  price  than  is  paid  for  armor  by  Japan,  Austria, 
Germany,  France,  or  England. 

Bethlehem  Steel  Company  entered  upon  the  manufacture  of 
armor  plate  at  the  request  of  the  United  States  Government.  It 
has  during  all  these  years  co-operated  with  the  Government  to 
the  end  that  the  United  States  should  have  the  benefit  of  the 
highest  development  of  the  art. 


65 


From  Eleventh  Annual  Report,  Bethlehem  Steel  Company 


Altogether  aside  from  the  financial  interests  of  your  Corporation, 
we,  as  citizens,  and  in  the  light  of  our  experience,  should  regard  it 
as  extremely  unfortunate  if  the  United  States  should  enter  upon  a 
policy  which  should  prevent  there  being  placed  continuously  at 
its  disposal  in  this  important  detail  of  national  defense,  the  expe- 
rience, the  enterprise  and  the  initiative  of  the  steel  manufacturing 
industry  of  the  country. 

Assuming  that  manufacturers  are  willing  to  accept  as  low  a  price 
as  the  Government  may  properly  exact,  we  earnestly  hope  that 
Congress  will  not  feel  it  necessary  to  embark  upon  the  proposed 
policy. 


56 


Remarks  of  Charles  M.  Schwab 


At  annual  meeting  of  stockholders 
of  Bethlehem  Steel  Company, 
at  Newark,  N.  J.,  April  4,  1916 


'*It  is  my  duty  to  call  to  the  attention  of  the  shareholders  of  this 
company  the  fact  that  the  Senate  has  passed  a  bill  appropriating 
$11,000,000  to  construct  a  Government  armor  plant  with  a  capacity 
of  20,000  tons  a  year — a  capacity  far  in  excess  of  the  average 
annual  requirements  of  the  United  States  Government  for  many 
years  past.  That  bill  is  now  pending  before  the  House  of 
Representatives. 

"The  chairman  of  the  Senate  Committee  on  Naval  A£fairs  on 
November  27,  1914,  publicly  called  attention  to  the  fact  that  if  the 
Government  entered  into  its  own  armor  manufacture  it  would 
destroy  the  armor  manufacturing  business  of  the  private  plants. 

"Your  company  has  invested  some  $7,000,000  in  an  armor  plant. 
Should  a  Government  plant  be  built,  that  investment  will  be 
rendered  practically  valueless.  Of  course  this  investment  is  only 
about  five  per  cent  of  the  total  investment  in  your  various  proper- 
ties, and  the  total  armor  business  is  less  than  three  per  cent  of 
your  gross  annual  turnover.  The  integrity  of  the  Bethlehem  Steel 
Corporation  does  not  depend  upon  the  manufacture  of  armor. 


"In  order  to  save  as  much  as  possible  of  our  investment  in 
this  branch  of  business,  we  have  taken  steps  to  bring  to  the 


57 


Remarks  of  Charles  M.  Schwab  at  Annual  Meeting 


attention  of  Congress,  as  frankly,  as  openly,  and  as  vigorously 
as  we  know  how,  the  considerations  which  we  feel  should  pre- 
vail in  rejecting  the  proposal  to  build  a  Government  plant. 

"Senator  Tillman,  a  strong  advocate  of  a  Government  plant,  in  a 
public  hearing  on  November  27,  1914,  himself  said  that  'it  would 
be  very  unfortunate  for  the  [Midvale]  company  as  well  as  for  our- 
selves if  we  [meaning  the  Government]  were  to  manufacture  our 
own  armor,  because  it  would  be  much  better  if  we  should  have  the 
manufacturers  supply  the  Government  at  a  reasonable  price.' 

"We  feel  that  Senator  Tillman  was  entirely  correct  in  that  state- 
ment. It  is  a  distinct  asset  to  have  a  maximum  armor-making 
capacity  at  the  disposal  of  the  Government.  It  is  acknowledged 
that  the  United  States  is  to-day  getting  the  best  quality  of  armor 
in  the  world.  It  is  getting  that  quality  at  a  price  below  that  paid 
for  armor  by  any  other  great  naval  power.  The  United  States, 
according  to  official  reports,  has  paid  a  lower  price  for  armor 
over  a  period  of  twenty  years  than  any  of  the  other  countries 
with  large  navies. 

"To  fulfill  to  a  greater  degree  the  conditions  suggested  by  Senator 
Tillman,  we  have  offered  to  reduce  the  price  of  armor  by  $30  a  ton 
below  the  price  even  now  obtaining. 

"The  Secretary  of  the  Navy  has  suggested  that  if  this  new  price  is 
accepted  it  will  not  be  long  before  the  price  is  once  more  'soaring.' 
As  an  earnest  of  our  policy  with  reference  to  that  point : 

^^We  are  prepared  to  manufacture  armor  for 
an  indefinite  period  at  any  price  which  the 
Federal  Trade  Commission  shall,  after  an 
examination  of  all  facts,  decide  to  be  fair 
and  reasonable. 


58 


Remarks  of  Charles  M.  Schwab  at  Annual  Meeting 


6i 


It  has  been  declared  that  if  the  Government  should  monopolize 
the  manufacture  of  armor,  that  fact  would  take  away  from  private 
capital  any  incentive  for  agitating  enlarged  naval  or  military 
programs. 

''I  desire  to  say  in  the  most  unequivocal  terms  that  no  representa- 
tive of  the  Bethlehem  Steel  Company  is  seeking  or  has  sought  to 
influence  legislation  as  to  the  size  of  naval  or  military  expendi- 
tures. That  is  not  our  business.  Our  business  is  to  serve  the 
United  States  Government  just  in  so  far  as  the  Government  may 
elect  to  avail  itself  of  our  services. 

"Since  the  war  in  Europe  began  our  prices  there  have  been  practi- 
cally what  we  choose  to  ask,  but  we  have  not  in  any  instance 
increased  the  price  of  any  ordnance  products  to  the  United  States 
Government.  We  are  keeping  hands  off  of  any  interference  with 
the  Government's  as  to  preparedness  or  national  defence;  we  are 
seeking  to  make  all  our  prices  so  fair  as  to  command  the  utmost 
confidence  of  every  officer  of  the  Government,  and  we  are  doing 
our  best  to  supply  a  quality  of  product  in  accordance  with  the 
highest  development  of  the  manufacturing  art. 

"This  country  is  threatening  to  adopt,  in  reference  to  armor- 
plate,  a  policy  which  other  great  nations  of  the  world  have  rejected. 
We  are  prepared  to  continue  our  co-operation  with  the  United 
States  Government  with  every  resource  at  our  disposal,  and  we 
earnestly  hope  that  Congress  will  not  find  it  necessary  to  embark 
upon  the  projected  course  of  action." 


59 


Statement  by  Eugene  G.  Grace 


President  of  the  Bethlehem  Steel  Company, 
concerning  proposed  Bill  to  construct  a 
Government  armor  plant,  before  Committee  on 
Naval  Affairs  of  the  House  of  Representatives  at 
Washington,  D.  C,  Wednesday,  March  22,  1916 

Washington,  D.  C,  March  22,  1916. 
To  the  House  Committee  on  Naval  Affairs: 

The  Senate  has  passed  the  Bill  to  construct  a  Government  armor 
plant  at  a  cost  of  $11,000,000.  If  the  House  should  pass  this  Bill, 
it  will  mean  that  as  soon  as  the  new  plant  is  constructed,  the 
twenty  odd  million  dollars  now  invested  in  privately  owned  plants 
will  have  been  rendered  practically  valueless,  for  existing  plants 
have  ample  capacity  to  meet  all  the  needs  of  the  Government. 

The  question,  however,  should  not  be  determined  merely 
with  reference  to  the  interests  of  private  manufacturers; 
it  should  be  decided  with  reference  to  the  interests  of  the 
people  as  a  whole,  and  especially  with  supreme  regard  for 
adequate  national  defense. 

The  Bethlehem  Steel  Company,  altogether  aside  from  its  financial 
interests  but  recognizing  its  obligation  as  a  citizen,  in  order  that 
its  position  may  be  clearly  understood  now  desires  formally  to 
submit  the  following  proposition  to  the  Federal   Government: 


60 


Statement  by  Eugene  G.  Grace  Before  House  Committee 


We  Mdll  manufacture  one-third,  or  such  additional  quantity  as 
may  be  awarded  to  us,  of  the  armor-plate  required  for  the  con- 
templated five-year  naval  program  (estimated  at  approximately 
120,000  tons),  at  a  price  of  $395  for  side  armor,  as  compared  with 
the  price  of  $425  now  obtaining.  The  proposed  price  is  lower  than 
has  been  paid  by  the  Government  for  more  than  ten  years. 

If  the  foregoing  price  is  not  satisfactory,  we  will  agree  to  permit 
any  well-known  firm  of  chartered  public  accountants  to  inventory 
our  plant  and  make  careful  estimates  of  the  cost  of  manufacture; 
with  that  data  in  hand  we  will  meet  with  the  Secretary  of  the  Navy 
and  agree  to  manufacture  armor  at  a  price  which  will  be  entirely 
satisfactory  to  him,  as  being  quite  as  low  as  the  price  at  which 
the  Government  could  possibly  manufacture  armor  on  its  own 
account,  after  taking  into  account  all  proper  charges. 

Admiral  Straus,  Chief  of  the  Naval  Bureau  of  Ordnance,  has  stated 
that  the  only  possible  purpose  of  a  Government  plant  is  to  obtain  a 
lower  price.  There  certainly  is  some  point  where  it  would  not  pay 
the  United  States  to  build  an  armor  plant  of  its  own. 

We  make  the  foregoing  proposition  rather  than  have  our  plant 
put  out  of  existence.  We  have  invested  over  $7,000,000  in  that 
plant,  as  actually  inventoried  to-day.  This  figure  does  not  take 
into  account  large  sums — certainly  $2,000,000 — expended  for  plant 
and  equipment  which  have  been  abandoned  because  of  becoming 
obsolete. 

We  are  to-day  selling  armor  to  the  United  States  Government  at  a 
lower  price  than  any  other  large  naval  power  in  the  world  is  paying, 
even  where  the  government  has  itself  embarked  in  the  business. 
Not  only  is  that  true,  but  the  specifications  in  the  United  States 
are  much  more  rigid  and  the  wages  paid  are  very  much  higher  than 
those  prevailing  in  any  foreign  country. 

England  buys  its  armor  from  five  privately  owned  plants,  and  is 
now  paying  $503  a  ton.    Germany  has  two  privately  owned  plants, 


61 


Statement  by  Eugene  G.  Grace  Before  House  Committee 


and  is  paying  $490  a  ton.    The  United  States  pays  $425  a  ton,  and 
we  now  offer  to  reduce  that  figure  by  $30  a  ton. 


All  the  more  important  countries  engaged  in  the  present  war 
employ  the  policy  with  reference  to  armor-plate  manufacture 
which  this  country  now  threatens  to  abandon.  The  meaning 
of  that  policy  is  that  it  places  continuously  at  the  disposal 
of  the  Government  in  this  important  detail  of  national  de- 
fense, the  experience,  the  enterprise,  the  initiative  and  the 
resources  of  the  steel  manufacturing  industry  of  the  country. 


Steel  prices  are  continually  going  up,  and  they  are  to-day  much 
higher  than  has  been  the  case  for  many  years.  In  spite  of  that,  we 
offer  to  build  armor  at  a  lower  price  than  the  United  States 
Government  has  paid  for  twenty-nine  years,  and  we  agree  to 
accept  this  lower  price  for  the  next  five  years. 

We  also  call  attention  to  the  fact  that  though  since  the  war  began 
we  have  been  able  to  get  in  Europe  almost  any  price  we  chose  to 
ask  for  ordnance,  we  have  during  that  period  made  no  addition 
whatever  to  the  selling  price  to  the  United  States  Government  of 
any  of  the  ordnance  products  which  we  manufacture. 


62 


The  Bethlehem  Steel 
Company's 

offer  to  the 

United  States 
Government 


The  Bethlehem  Steel  Company 
maintains  no  lobby  to  urge  its 
views  in  Washington.  It  is 
relying  upon  Publicity  to  get  its 
position  before  Congress  and 
the  People. 


63 


The  Bethlehem  Steel  Company's 
Offer  to  the  U.  S.  Government 


Bethlehem  Steel  Company 

South  Bethlehem,  Pa. 

June  19,  1916 

Hon.  Benjamin  JR.  Tillman,  Chairman 

Senate  Committee  on  Naval  Affairs, 

United  States  Senate, 

Washington,  D,  C. 

My  Dear  Sir: 

As  part  of  the  Naval  Appropriation  Bill  as  it  comes  to  the  Senate 
from  the  House  of  Representatives,  is  a  provision  to  construct  a 
Government  armor  plant  at  a  cost  of  $11,000,000.  This  provision 
is  in  substance  identical  with  the  separate  Bill  passed  by  the  Sen- 
ate for  the  same  purpose,  the  Senate  Bill  itself  not  having  been 
acted  upon  by  the  House.  The  proposition  thus  comes  before  the 
Senate  as  part  of  a  new  Bill. 

I  desire  to  present  to  your  committee  a  proposition  from  my 
Company  which  had  not  been  made  when  the  Senate  previously 
acted  on  this  matter,  and  which,  I  venture  to  hope,  may  warrant 
further  consideration  by  the  Senate; 

The  Bethlehem  Steel  Company  will  agree,  for  such  period 
as  the  Government  may  designate  as  fully  protecting  the 
public  interest,  to  manufacture  armor  plate  for  the  Govern- 
ment of  the  United  States  at  actual  cost  of  operation  plus  such 
charges  for  overhead  expenses,  interests,  and  depreciation  as 
the  Federal  Trade  Commission  may  determine  to  be  fair. 


64 


The  Bethlehem  Steel  Co.'s  Offer  to  the  U.  S.  Government 


Our  Previous 
Proposition 


When  I  appeared  before  your  Committee  some  months  ago  I 
proposed  that  certified  public  accountants  satisfactory  to  the 
Navy  Department  should  inventory  our  plants  and  determine  the 
actual  cost  of  making  armor;  and  that  with  these  figures  in  hand 
we  should  confer  with  the  Secretary  of  the  Navy  and  agree  upon  a 
price  mutually  satisfactory. 

That  proposition  was  objected  to  by  the  Secretary  of  the  Navy  on 
the  ground  that  he  did  not  believe  the  determination  of  so  impor- 
tant a  matter  should  be  left  to  the  personal  judgment  of  any  indi- 
vidual happening  at  the  moment  to  be  the  Secretary  of  the  Navy. 


After  the  Senate  had  failed  to  act  upon  the  foregoing  suggestion, 
I  appeared  before  the  House  Committee  on  Naval  Affairs,  and,  in 
order  to  make  our  position  still  clearer,  offered  to  place  the  abso- 
lute determination  of  the  question  of  price  in  the  hands  of  the 
Government  itself  as  represented  by  the  Federal  Trade  Com- 
mission. 

It  has  been  suggested  that  our  act  was  a  ^'death-bed  repentance," 
as  it  was  not  taken  until  it  became  apparent  that  the  Government 
would  authorize  the  building  of  an  armor  plant,  which  through 
Government  manufacture  would  destroy  the  need  and  therefore 
the  value  of  our  own  plant,  in  which  we  had  invested  $7,000,000. 

The  fact  is  that  we  do  not  for  one  moment  concede  that  the 
prices  charged  for  armor  in  the  past  have  been  unreasonable. 

Is  it  conceivable  that  we  would  make  the  proposition  we  have  done 
if  we  were  conscious  of  having  been  party  to  any  extortion  of  the 
Government  in  the  past? 


65 


The  Bethlehem  Steel  Co.'s  Offer  to  the  U.  S.  Government 


Lower  Price 
OflFered  Repeatedly 


We  have  repeatedly  offered  to  manufacture  armor  at  a  lower 
cost  if  a  larger  tonnage  should  be  contracted  for.  The  Govern- 
ment has  asked  for  bids  from  the  three  manufacturers,  but  its 
practice  has  not  been  to  give  the  contract  to  the  lowest  bidder: 
each  year's  order  has  been  divided  among  the  three  plants,  thus 
making  abortive  any  efforts  at  competition. 

The  Bureau  of  Ordnance,  reporting  to  the  Navy  Department, 
June  28,  1913,  stated  that  without  allowing  anything  for  interest 
on  investment  the  probable  manufacturing  cost  of  armor  pro- 
duced in  a  Government  plant  would  be  as  follows: 


*Output 
per  Annum 

Capacity  of  Plant 

20,000  tons 

10,000  tons 

5,000  tons 

20,000 

10,000 

5,000 

Cost  per  ton 

$279 

Cost  per  ton 

$349 
314 

Cost  per  ton 

$400 

394 

354 

The  Bureau  estimated  that  if  interest  on  investment  were  to  be 
added,  the  sum  of  $49  per  ton  should  be  added  to  the  foregoing 
charges  on  a  plant  of  10,000  tons  capacity. 

Our  plant  has  12,000  tons  capacity,  and  the  average  annual 
amount  since  1887  which  we  have  been  asked  to  supply  to  the 
Government  has  been  only  3,280  tons,  or  a  little  over  25  per  cent, 
of  capacity.  The  average  cost  to  the  Government  for  the  armor 
so  supplied  has  been  $432.62  per  ton. 

*From  hearing  before  the  House  Committee  on  Naval  Affairs;  64th  Congreaa,  firat  aeaalon,  volume  3,  page  3707, 
report  of  the  Bureau  of  Ordnance  on  cost  of  Government  Armor  Factory. 


66 


The  Bethlehem  Steel  Co.'s  Offer  to  the  U,  S.  Government 


It  is  obvious  that  the  cost  to  be  borne  by  each  ton  for  overhead, 
interest,  etc.,  increases  as  the  annual  output  is  reduced.  There- 
fore, accepting  the  Government's  own  figures,  with  a  capacity 
such  as  we  have,  operating  at  less  than  one-third  its  capacity, 
the  production  cost  in  a  Government  plant,  without  allowance 
for  interest,  would  have  been  much  greater  than  the  $432.62 
which  we  were  paid. 


Our  new  proposition  is  not  a  "death-bed  repentance,"  it  is  a 
renewed  eflfort  to  make  clear  to  the  Government  and  to  the  public 
that  we  seek  only  what  is  absolutely  fair.  Our  proposition  is 
made  in  complete  confidence  that  thorough  consideration  by  a 
competent  and  impartial  tribunal  will  establish  two  facts: 

1.  That  our  policy  and  prices  in  the  past  have  been  reasonable; 
and, 

2.  Such  are  the  economies  that  we  can  effect  in  the  manufacture 
of  armor  in  connection  with  our  other  products  that  under  present 
conditions  we  can  manufactiu*e  for  the  Government  cheaper 
than  the  Government  can  possibly  do  so  for  itself. 


Taking  the  Profit 
Out  of  War 


It  is  said  that  a  Government  plant  should  be  built  "to  take  the 
profit  out  of  war." 

Our  Company  has  no  inclination  to  make  capital  out  of  the 
military  necessities  of  the  United  States.  In  the  event  of  war  or 
threatened  war,  all  the  facilities  we  have  for  any  purpose  are  at 
the  disposal  of  the  United  States  Government  upon  its  own  terms. 
That  means  not  only  our  armor  plant;  it  includes  our  commercial 
plant,  and  our  ordnance-making  facilities.  We  have  lu-ged  no 
programme  of  preparedness;  we  desire  only  to  be  able  to  serve 
the  Government  as  we  may  be  called  upon. 


67 


The  Bethlehem  Steel  Co.'s  Offer  to  the  U.S.  Government 


Our  armor  plant  was  built  at  the  request  of  the  Government  of 
the  United  States.  That  request  has,  by  the  implicit  action  of 
successive  Secretaries  of  the  Navy,  been  frequently  renewed. 

The  Government  has  acted  upon  the  theory  that  it  was  desirable 
to  maintain  a  reserve  armor-making  capacity  not  alone  for  the 
ordinary  but  also  for  the  unexpected  requirements  of  the 
Government. 

Why  We  Have  Not  Published 
Any  Detailed  Cost  Figures 

It  has  been  stated  that  we  have  declined  to  place  our  cost  figures 
at  the  disposal  of  the  Government,  and  that  construction  of  an 
armor  plant  would  enable  the  Government  to  determine  costs 
from  actual  experience. 

The  fact  is  that  we  have  repeatedly  agreed  to  place  all  the  figures 
relating  to  our  costs  and  details  thereof  privately  at  the  disposal 
of  Committees  of  Congress  or  the  Navy  Department  of  the  United 
States.  We  have  frankly  demurred  at  having  these  figures  pub- 
lished for  the  information  of  the  naval  departments  and  armor 
manufacturers  in  foreign  countries.  Armor  manufacturers  in 
foreign  countries,  while  declining  to  give  us  information,  have 
made  efforts  to  obtain  our  own  detail  costs.  We  do  not  feel  that  it 
would  be  fair  to  publish  our  figures  for  their  information,  when 
they  are  so  scrupulously  careful  to  prevent  our  benefiting  through 
examination  of  their  figures. 


The  situation  in  brief,  as  we  see  it,  is  as  follows) 

1.  Figures  compiled  for  your  committee  have  shown  you  that 
the  United  States  has  for  the  past  twenty  years  obtained  armor 
plate  at  a  price  materially  less  than  that  paid  by  any  of  the  great 
naval  powers,  while  our  labor  costs  were  and  are  higher  than  those 
prevailing  in  any  other  country. 


68 


The  Bethlehem  Steel  Co.'s  Offer  to  the  U.  S.  Government 


2.  The  Navy  Department  has  repeatedly  testified  that  the  quality 
of  armor  supplied  for  these  reduced  prices  was  better  than  the 
armor  made  for  the  navy  of  any  other  nation  in  the  world. 

3.  The  existing  prices  of  material  and  labor  are  very  much 
higher  than  was  the  case  when  the  estimate  was  made  that 
the  proposed  Government  plant  of  20,000  tons  capacity 
could  be  buik  for  $11,000,000. 

Our  experience  indicates  that  the  cost  now  will  be  fully  $15,000,000, 
and  probably  more. 

4.  The  naval  lessons  of  the  present  war  remain  to  be  learned. 

What  they  shall  teach  with  reference  to  armor  and  the  relative 
value  of  projectiles  and  armor  is  still  to  be  seen.  Under  no  condi- 
tions can  an  armor  plant  be  built  in  less  than  three  years.  Thus 
the  problem  to  be  faced  in  the  manufacture  of  armor  may  be 
absolutely  diflferent  by  the  time  the  plant  could  possibly  be 
ready  for  use. 

5.  The  private  armor-making  capacity  in  this  country  was 
brought  into  existence  at  the  behest  of  the  Government. 

In  these  three  plants  some  $20,000,000  has  been  invested.  The 
capacity  of  these  plants  is  and  for  many  years  will  continue  to 
be  in  excess  of  the  requirements  of  the  American  Government. 

These  facilities  are  of  value  for  no  other  purposes  than  the  making 
of  armor,  and  the  construction  and  development  of  a  Government 
plant  would  mean  the  practical  confiscation  of  these  plants  and 
the  elimination  of  reserve  capacity,  which  might  become  vitally 
important  in  any  emergency  in  national  defense. 


The  Bethlehem  Steel  Cc's  Offer  to  the  U.  S.  Government 


The  Inevitable  Effect  of 
A  Government  Plant 

m- 

It  has  been  urged  that  it  is  no  part  of  the  purpose  of  the  Govern- 
ment to  destroy  existing  armor  plants;  that  the  plan  is  wholly 
to  provide  Government  competition,  and  the  purpose  of  a  Govern- 
ment plant  will  have  been  fulfilled  if  the  plant  is  built  and  the 
key  thrown  away. 

We  respectfully  submit  that  there  is  no  occasion  for  such  a  waste 
of  Government  funds.  We  do,  however,  call  attention  to  the  fact 
that  in  contracting  for  articles  which  the  Government  itself 
makes,  orders  are  not  placed  with  private  concerns  until  the 
capacity  of  the  Government  plant  is  exhausted. 

What  We  Urge 

Under  the  foregoing  circumstances,  we  respectfully  ask  your 
Committee  to  reconsider  its  former  recommendation  on  this 
subject  and  to  bring  to  the  attention  of  the  Senate  these  con- 
siderations : 

I.  That  all  purposes  of  the  United  States  Government  will  be 
served  if  the  Federal  Trade  Commission  is  empowered  to  deter- 
mine the  price  and  the  Navy  Department  the  quality  of  the 
armor  which  shall  be  manufactured  for  the  use  of  the  United 
States  Government. 

II.  That  until,  under  the  foregoing  conditions,  the  existing 
capacity  of  armor  plants  built  for  and  at  the  request  of  the 
Government,  is  utilized,  it  will  be  unfair  to  private  manu- 
facturers for  the  Government  to  take  action  which  will  in  effect 
confiscate  their  property. 

III.  That  until  the  naval  lessons  of  the  present  war  in  Europe 
have  been  disclosed,  and  until  a  practical  effort  has  been  made 
to  obtain  armor  from  private  manufacturers  under  the  conditions 
named,  the  Government  should  not  proceed  with  the  expenditure 
of  the  public  money  necessary  to  construct  an  armor-making 
plant. 


70 


The  Bethlehem  Steel  Co.'s  Offer  to  the  U.  S.  Government 


This  question  should  not  be  determined  with  reference  to  the 
interests  of  the  Bethlehem  Steel  Company,  but  with  supreme 
regard  for  adequate  national  defense  and  sound  public  policy. 

Our  Company  asks  no  favors;  we  only  ask  that  the  Government 
thoroughly  ascertain  what  the  facts  are,  and  then  look  those  facts 
frankly  in  the  face.  If  the  facts  are  found  to  be  as  we  have  stated 
them,  and  are  seen  to  be  as  advantageous  to  the  Government  as 
we  believe  them  to  be,  we  respectfully  ask  the  Government  to  do 
what  it  finds  to  be  fair  to  us. 

As  you  are  aware,  we  maintain  no  "lobby"  in  Washington  to  urge 
our  views  on  this  or  any  other  matter.  We  have  sought  and  are 
seeking  to  present  our  views  of  this  measure  in  the  frankest  and 
most  public  way  we  can  devise.  In  keeping  with  our  policy,  we 
shall,  therefore,  take  the  liberty  of  giving  this  letter  to  the  press, 
as  well  as  make  such  other  distribution  of  it  as  will  bring  it  ade- 
quately to  public  attention. 

If  your  Committee  desires  further  information,  I  shall  be  very 
glad  to  appear  before  you  and  give  you  all  details  in  my  power. 
We  only  ask  that  you  give  us  a  fair  chance  before  you  take  steps  to 
cripple  our  industry. 

Very  respectfully, 

E.  G.  GRACE,  President 


71 


No  Danger  to  Ore  Supply 
of  Private  Armor  Plants 


The  Manufacturers'  Record  has  been  advocating  a  Government  armor  plant  on  the  ground  thai 
it  should  be  located  in  the  South. 

The  grounds  for  this  are  set  forth  by  Mr.  Richard  H.  Edmonds,  Editor  of  the  Record^  in  a  lettei 
to  Mr.  C.  M.  Schwab,  dated  June  21,    That  letter  in  part  said: 

I  wish  you  and  your  associates  would  consider  this  situation  from  the  broad  viewpoint  of  the 
extreme  danger  to  the  country,  in  the  event  of  war,  so  long  as  our  munition-making  business,  oui 
armor-plate  plants,  and  95  per  cent  of  our  steel  are  wholly  dependent  upon  an  ore  supply  that  could 
be  instantaneously  shut  off. 

If  you  for  a  moment  say  that  there  is  no  danger  of  the  capture  or  the  blocking  of  our  ore  supply, 
then  you  immediately  say  that  there  is  no  danger  of  war,  and  therefore  no  necessity  for  building  up 
a  navy  and  creating  an  army,  and  no  reason,  therefore,  for  making  armor  plate. 

You  know  the  industry  too  well  not  to  recognize  the  dangers  of  the  present  situation.  You  know 
that  in  the  event  of  war  the  entire  Umited  supply  of  foreign  ores  could  instantaneously  be  cut  off. 

You  know  that  the  50,000,000  tons  or  more  of  Lake  Superior  ores,  which  come  through  the  Soo 
Canal,  could  be  shut  off  with  equal  facility  and  without  a  moment's  warning.  And  yet  all  of  your 
plants  and  all  other  plants  in  the  country  producing  munitions  of  war,  and  th«  steel  plants  thai 
produce  95  per  cent,  of  the  steel  of  the  country,  are  subject  to  this  danger. 

The  danger  is  exactly  as  real  as  the  danger  of  war.  If  there  is  no  danger  of  war  with  any  outside 
power,  then  there  is  no  danger  of  this  upsetting  of  all  the  steel  industry  of  the  country.  In  that  case, 
however,  as  just  stated,  there  would  be  no  necessity  whatever  for  building  a  navy  or  constructing 
fortifications  and  equipping  them  with  great  guns. 

Senator  Tillman,  Chairman  of  the  Senate  Committee  on  Naval  Affairs,  wired  Mr.  Edmonds,  on 
June  21,  as  follows: 

Of  course,  you  know  already  that  materials  for  making  armor  plate  are  found  in  Alabama,  Virginia, 
and  in  Pennsylvania,  to  say  nothing  about  other  places.  If  the  Lake  Superior  ores  were  not  obtain- 
able, we  still  would  not  lack  for  material  to  make  armor.  But  the  structural  steel  and  other  steel 
needed  by  commerce  and  the  business  interests  of  the  country  would  be  very  difficult  to  obtain, 
of  course. 

72 


On  July  10,  Mr.  Schwab  replied  to  Mr.  Edmonds  as  follows: 

Absence  from  the  city  has  prevented  an  earlier  reply  to  your  letter  of  June  2l8t. 

I  regret  that  you  have  found  it  so  necessary  to  urge  the  amendment  of  private  manufacture  of  armor- 
plate  and  the  substitution  therefor  of  a  Government  plant.  In  view  of  the  fact  that  the  present 
private  industry  was  established  at  the  behest  of  the  United  States  Government,  we  are  unable  to 
see  the  fairness  or  the  justice  of  supplanting  that  enterprise  with  a  Government  plant,  especially 
when  no  needs  can  thereby  be  served  in  the  direction  of  national  defense  or  of  economy. 

1 

Your  suggestion  that  the  present  armor  plants  are  dependent  entirely  on  Lake  Superior  ores  is 

wholly  without  foundation.    In  the  first  place,  it  takes  very  little  ore  to  make  all  the  armor-plate 

which  is  necessary  for  the  United  States  Navy  in  a  year.    There  are  ample  deposits  of  ore  for  such 

^  purpose  in  Central  Pennsylvania.    Besides  that,  there  is  always  a  large  amount  of  pig  iron  at  the 

various  iron  and  steel  plants  throughout  the  country,  and  the  available  supply  of  pig  would  at  any 

time  be  sufficient  to  manufacture  aU  the  armor  which  might  be  required.    Further  than  that,  we  are 

dependent  upon  the  Soo  Canal  to  obtain  ores  even  from  the  Lake  Superior  region.    Such  ores  can 

very  easily  be  brought  by  railroad  to  Duluth  and  from  there  direct  via  Chicago  to  either  Pittsburgh, 

Philadelphia  or  Bethlehem.    Such  ores  can  be  brought  quite  as  easily  to  any  of  these  three  points  as 

to  Alabama,  where  you  suggest  that  a  Government  plant  be  located. 

There  is  the  further  fact  to  consider  that,  if  as  you  suggest,  access  of  the  United  States  to  Lake 
Superior  regions  via  the  Soo  Canal  should  be  cut  off,  and  the  armor  plate  plants  near  the  seacoast, 
such  as  at  South  Bethlehem  and  at  Philadelphia,  should  be  in  possession  of  an  enemy,  it  would  be  safe 
to  assume  that  our  entire  seacoast  would  then  have  been  captured,  and  our  navy  rendered  powerless. 

It  would  then  be  impossible  to  construct  a  naval  ship  on  the  seacoast,  and  armor  whether  manu- 
factured at  Pittsburgh  or  Alabama  would  be  useless. 

I  hope  you  will  appreciate  from  the  foregoing  that  the  argument  on  the  ground  of  ore  supply  for  a 
*•  Government  plant  at  some  point  "away  from  the  coast  and  not  depending  on  Lake  Superior  or 

foreign  ores,"  falls  to  the  ground. 

Though  every  man  ought  to  express  his  views  exactly  as  he  has  them,  I  cannot  but  feel  that  the 
opposition  of  the  Manufacturers'  Record  to  private  armor  manufacture  is  based  upon  misinforma- 
tion and  faulty  analysis  of  the  facts  as  they  are.  If  we  can  set  you  right,  it  would  give  us  pleasure 
to  do  so.  With  that  end  in  view,  we  shsdl  be  very  glad  to  supply  you  with  any  information  in  our 
power. 


73 


What  Six  Members  of 
Congress  Say 

The  House  Committee  on  Naval  Affairs  has  recommended  the 
passage  of  the  Tillman  Bill  to  appropriate  $11,000,000  to  build  a 
Government  armor  plant. 

The  six  minority  members  of  the  Committee  have  also  filed  a 
report  in  which  they  say: 

"Conditions  are  such  in  the  world  that  yre  cannot  forecast  our  future 
military  necessities. 

"Whatever  ve  may  decide  eventually  as  to  the  wisdom  of  taking  away 
from  private  enterprises  the  manufacture  of  armor  and  other  munitions  of 
war,  we  should  not  weetken  oxir  military  situation  in  any  direction  at  this 
time  or  diuing  the  years  immediately  following  the  close  of  the  present  war." 


"The  naval  bill  this  year  will  carry  an  appropriation  undoubtedly  of 
more  than  $200,000,000. 

"This  bill  appropriates  $11,000,000  for  an  armor  plate  factory  of  20,000 
tons  capacity. 

"The  estimates  for  this  plant  were  made  in  1913. 

"Since  that  time  labor  and  material  have  advanced  in  cost  approximately 
(forty  per  cenL 

"If  this  plant  is  built  under  present  conditions  or  at  any  time  during  the 
continuance  of  the  war  in  Europe,  it  probably  will  cost  the  Government 
$15,000,000. 

"We  believe  that  this  money  could  be  spent  more  wisely  at  this  time  on 
the  navy  afloat  than  on  the  navy  ashore. 

"It  seems  to  us  that  we  are  much  more  in  need  at  the  present  time  of  a 
'fighting   navy*   than  a   'manufacturing  navy.* " 

{/Signed)        Thomas  S.  Butler,  Pennsylvania 
EjTiest  W.  Roberts,  Massachusetts 
William  Browning,  New  Jersey 
John  R.  Farr,  Pennsylvania 
Patrick  K.  Kelly,  Michigan 
Sidney  E.  Mudd,  Maryland 


74 


Part  Two 


What  People 

Are  Thinking  Ahout 

A  Government 

Armor  Plant 


I 


Newspaper  Editorials 

Republished  by 

Bethlehem  Steel  Company 

South  Bethlehem,  Pa. 


What  People  Are  Thinking 

To  Members  of  Congress  and  the  Public: 

Herewith  are  editorial  comments  from  newspapers  through- 
out the  United  States. 

The  Bethlehem  Steel  Company  has  been  seeking  frankly, 
earnestly  and  aggressively  to  present  to  the  people  of  the  United 
States  the  reasons  against  building  a  Government  armor  plant.  The 
Company  has  done  this  for  an  admittedly  selfish  reason  which  we 
believe  is  also  in  the  interest  of  the  people  of  the  United  States. 

When  our  campaign  of  publicity  was  instituted,  the  editorial 
sentiment  of  the  country  was  almost  unanimously  suspicious  or 
antagonistic. 

We  have  felt,  however,  that  our  position  was  so  strong  that  it 
could  stand  candid  presentation.  We  have  believed  that  once 
Congress  and  the  people  realized  the  facts  which  had  been  so  much 
misunderstood  both  in  Congress  and  elsewhere,  the  public  would 
see  that  our  position  was  sound. 

Examination  of  the  editorials  published  in  the  press  of  the 
whole  country  indicates  a  distinct  sentiment  on  the  part  of  the 
pubUc  that — 

The  way  to  deal  with  the  manufacturers  of 
armor  is  not  by  smothering  private  enterprise 
and  by  confiscating  private  investment,  but  by 
Government  investigation  of  the  facts  and 
regulation  of  the  industry  in  the  public  interest. 

The  people,  we  believe,  now  realize  that  our  proposition  is 
fair,  and  that  our  offer  to  the  United  States  Government  to 
make  armor-plate  upon  the  Government's  own  terms  is  a  proposi- 
tion not  only  of  enlightened  self-interest  but  in  the  broadest 
pubUc  interest. 

Bethlehem  Steel  Company 

CHAS.  M.  SCHWAB,  Chairman 
EUGENE  G.  GRACE,  President 

South  Bethlehem,  Pa. 
July  15,  1916. 


What  People  Are  Thinking — Editorial  Comment 

Alabama 


Birmingham  News,  March  23,  1916 

THE  BETHLEHEM  STEEL  PROPOSAL: 
AN  ELEVENTH  HOUR  REPENTANCE 

.  .  .  That  reduces  the  proposal  to  one  of  perfect 
fairness.  If  it  is  an  eleventh-hour  repentance  and 
done  only  for  the  sake  of  self-preservation,  the  fair- 
ness of  it  as  a  business  proposition  is  not  altered. 

The  offer  of  President  Grace  would  seem  to  be  all 
that  could  be  expected  of  business  men.  Whatever 
foolish  threat  was  made  by  the  manufacturers  prior 
to  the  passage  of  the  Senate  bill  need  not  be  considered 
by  that  body. 

The  latest  offer  of  the  Bethlehem  corpora- 
tion deserves  consideration,  since  it  may 
mean  a  great  saving  to  the  people  of  the  United 
States. 

It  is  a  business  proposition,  pure  and  simple, 
and  should  be  treated  as  such. 

If  the  $11,000,000  provided  in  the  Senate  bill  will 
erect  a  plant  of  sufficient  capacity  to  produce  all  the 
armor  plate  necessary  for  the  five-year  naval 
program,  well  and  good. 

But  if  the  Congress  can  secure  a  price  from  the 
private  plants  equal  to  what  it  would  cost  the  Gov- 
ernment to  manufacture  the  plate,  or  a  fraction 
more,  it  would  seem  to  be  an  economical  plan  to  let 
the  private  plants  go  ahead  with  the  work. 

If  the  work  can  be  done  at  less  cost  by  private  cor- 
porations who  have  the  necessary  equipment  in- 
stalled, the  question  assumes  a  new  aspect  entirely. 

Eleven  million  dollars,  it  occurs  to  us,  is  well  worth 
saving.  Eleven  milhon  dollars  is  enough  to  build  a 
first-class  battleship. 


Birmingham  Ledger,  April  19,  1916 

ANY  ARMOR  PLATE  DEBATE 
SEEMS  USELESS 

.  .  .  Those  of  us  who  do  not  know  all  the  inside 
facts  are  inclined  to  think  the  Bethlehem  company 
reasonable  when  it  offers  to  make  the  plates  under 
Government  direction,  at  Government  prices,  for  an 
indefinite  period. 

That  looks  reasonable.  There  is  no  good  reason 
why  the  government  should  destroy  a  perfectly  good 
armor  plant  and  build  another,  if  the  above  propo- 
sition holds  good.  Col.  Hillary  A.  Herbert,  as 
Secretary  of  the  Navy,  said: 

"The  two  eu-mor  contractors,"  the  Bethlehem 
plant  and  another,  "entered  the  business  at  the  re- 
quest of  the  navy." 

That  $7,000,000  plant  is  surely  good  enough 
to  make  armor,  and  if  the  company  is  willing 
to  make  it  at  navy  prices  under  navy  specifii- 
cations  that  ought  to  settle  the  armor  plate 
debate  definitely  and  at  once.  .  .  . 


The  latest  offer  of  the  Bethlehem  corporation  deserves 
consideration,  since  it  may  mean  a  great  saving  to  the 
people  of  the  United  States. 


-Birmingham  News 
March  23, 1916 


What  People  Are  Thinking — Editorial  Comment 

California 


Stockton  Mail,  April  4,  1916 

A  THREAT  IS  SUFFICIENT 

.  .  .  No  one  can  find  fault  with  this  offer  to  do 
business  on  a  fair  margin  of  profit,  and  it  is  not  un- 
likely that  it  will  be  accepted  by  Congress. 

That  the  Government  has  for  years  been  robbed  of 
$30  or  more  a  ton  on  armor  plate  is  obvious,  but  if  it 
can  force  the  private  plants  to  supply  its  needs  for  a 
reasonable  consideration  and  thereby  save  the 
$11,000,000  which  would  have  to  be  expended  to 
build  a  factory,  it  ought  to  do  so.  .  .  . 


[//  the  Government  accepts  our  offer  to  make  armor 
plate  at  a  price  the  Federal  Trade  Commission  shall 
fix,  it  is  obvious  that  investigation  by  the  Federal 
Trade  Commission  will  determine  whether  or  not  the 
Government  has  been  robbed  in  the  past. 

Is  it  conceivable  that  we  would  agree  to  such  a 
proposition  if  we  did  not  honestly  believe  that  a  thorough 
examination  would  show  that  our  prices  in  the  past 
have  been  reasonable? 

Bethlehem  Steel  Company.] 

Modesto  Herald,  April  8,  1916 

PUBLIC  OPINION  COURTED 
THESE  DAYS 

If  the  advance  of  popular  Government  has  done 
nothing  else,  it  has  surely  demonstrated  the  value  of 
publicity. 

In  the  old  days,  the  big  corporations  and  the 
legislators  who  represented  them  had  little  use  for 
publicity. 

Their  main  object  was  to  keep  the  people  in  ignor- 
ance of  what  was  going  on  and  for  public  opinion 
they  didn't  give  a  hang;. 

Now  all  is  changed.  The  people  awakened 
several  years  ago  and  took  a  hand  in  the  affairs  of 
state  and  nation. 

The  interests,  so-called,  also  awakened  and  began 
to  realize  that  public  opinion  was  a  great  power. 

Instead  of  seeking  the  dark  places  they  fell  all 
over  themselves  to  get  public  opinion  their  way  and 
they  are  still  at  it,  fairly  deluging  the  press  and 


public  with  facts  and  figures  showing  their  side  of  any 
matter  that  might  be  under  discussion.  .  ,  . 

The  same  change  of  attitude  is  true  of  national 
affairs.  Just  now  the  national  Government  is  con- 
sidering the  matter  of  a  Government-owned  armor 
plate  factory. 

A  few  years  ago  the  details  of  the  matter  would 
have  been  kept  very  quiet  and  very  likely  the  bill 
would  have  been  quietly  killed  without  the  public 
being  consulted.  In  fact,  the  public  would  probably 
never  have  known  that  such  a  matter  was  before 
Congress. 

But  these  are  days  in  which  publicity  is  courted 
and  every  day  brings  to  every  newspaper  office  in  the 
land  an  open  letter  from  the  Bethlehem  Steel  Com- 
pany, giving  facts  and  figures  why  the  Government 
should  not  own  its  own  armor  plate  factory. 

And  in  order  to  give  weight  to  the  argument,  the 
Bethlehem  Steel  Company  announces  in  these  letters 
that  it  is  willing  to  reduce  the  price  of  armor  plate  to 
the  Government  from  $425  a  ton  to  $395  a  ton, 
(The  weightiest  argument  for  a  Government  plant 
was  the  price,  which  was  claimed  to  be  higher  than 
charged  foreign  powers.) 

In  answer  to  this  it  was  argued  that  should  this 
offer  be  accepted  and  the  Government  plant  not  be 
built,  the  price  of  armor  would  soon  start  soaring 
again. 

Now  comes  the  Bethlehem  Steel  Company  with 
another  open  letter  to  the  members  of  Congress  and, 
through  the  press,  to  the  American  people,  in  which 
it  says,  "We  will  agree  to  make  armor  at  the  reduced 
price  named,  for  at  least  five  years;  or  we  will  agree 
for  an  indefinite  period  to  make  armor  at  any  price 
which  the  Federal  Trade  Commission  may  name 
as  fair." 

Imagine  the  steel  trust  coming  out  in  the  open  with 
an  offer  like  this  before  the  days  of  regulation  and 
the  "freak"  legislation  which  Big  Business  has  cried 
so  much  about. 

Verily,  times  have  changed.  The  people  are  at 
least  consulted  now,  even  if  they  don't  rule 
altogether. 


^What  People  Are  Thinking — Editorial  Comment 

Colorado 


Colorado  Springs  Gazette,  June  3,  1916 
JUST  A  BIT  TOO  LATE 

The  Bethlehem  Steel  Company  has  been  just  a 
bit  too  late  in  its  adoption  of  the  policy  of  publicity. 

It  conducted  an  able  fight  against  the  armor  plate 
plant  provision  of  the  naval  bill,  and  proved  to  the 
entire  satisfaction  of  clear-thinking  individuals  that 
the  expenditure  would  be  utterly  useless;  but,  never- 
theless, the  House,  sitting  as  a  committee  of  the 
whole,  has  passed  by  a  vote  of  165  to  91  the  amend- 
ment to  the  naval  appropriation  bill  csirrying  the 
$11,000,000  for  this  Government  enterprise.  .  .  . 

.  .  .  But  the  policy  came  too  late,  and  it  is 
to  be  regretted.  There  was  not  time  enough  to 
bring  any  considerable  public  opinion  to  bear 
upon  Congress. 

Though,  in  view  of  what  has  happened  in  the  case 
of  the  Army  and  Navy  bills,  and  other  measures 
recently,  it  is  doubtful  anyway  whether  congress- 
men can  be  persuaded  or  forced  to  do  other  than  as 
they  personally  desire — which  is  to  grab  all  the 
"pie"  in  sight  while  they  can. 

The  House  refused  to  take  note  of  the  fact  that 
the  Bethlehem  Company,  working  on  a  continuous 
order,  could  manufacture  armor  plate  much  cheaper 
than  could  the  Government;  that  it  offered  to  pro- 
duce the  plate  for  any  price  named  by  a  Government 
Commission ;  that  it  would  be  forced  out  of  business 
should  the  new  plant  be  constructed,  thus  depriving 
the  nation  of  the  benefits  of  plants  well  able  to  care 
for  all  the  work  that  would  come  with  an  emer- 
gency, which  the  Government  plant  cannot  do. 

The  Federal  plant  had  not  a  leg  to  stand  on, 
but  that  made  no  difference  to  the  House  and 
the  Senate. 

There  was  a  chance  to  vote  away  millions,  and 
such  a  chance  could  not  be  passed  by. 


The   Federal  plant   had 
not  a  leg  to  stand  on. 


-Colorado  Springs  Gazette 
June  3, 1916 


Denver  Rocky  Mountain  News,  June  1,  1916 
THE  NEW  WAY  OF  LOBBYING 

A  new  method  of  lobbying  is  developing  popularity 
with  those  who  have  projects  to  further  and  interests 
to  protect  in  which  the  public  is  concerned. 

It  is  a  vast  improvement  over  the  old  methods 
which  ignored  the  public  and  sought  to  persuade 
their  representatives  by  subterranean  avenues  of 
approach. 

The  Bethlehem  Steel  Company  is  telling  the 
people  of  the  country  why  it  is  opposed  to  a  Govern- 
ment armor  plant  and  what  it  is  willing  to  do  in 
supplying  the  Government  with  armor. 

There  is  much  to  commend  in  this  direct  and  open 
policy  of  lobbying  among  the  people.  It  is  a  psycho- 
logically good  policy. 

It  bears  the  impress  of  frankness;  it  compliments 
the  intelligence  of  the  public;  it  disarms  much 
criticism  that  would  be  aroused  by  the  secretive 
methods  that  were  once  the  only  methods  employed. 

But,  perhaps,  the  most  significant  fact  suggested 
by  this  popular  lobby  is  the  development  of  a  better 
atmosphere  in  business  and  politics,  an  atmosphere 
in  which  the  old-time  lobbyist  can  no  longer  breathe 
freely  and  work  effectively. 

It  is  no  new  thing  for  business  interests  to  seek 
the  shaping  of  favorable  public  opinion,  but  in 
former  days  the  work  was  done  by  means  more 
subtle  and  less  honorable. 

Purchasable  newspapers  disguised  the  ulterior 
motive  in  editorial  appeals  that  pretended  to  be 
disinterested.  Most  of  them  have  gone  the  way 
they  deserved  to  go,  paying  the  penalty  for  their 
betrayal.  Any  that  remain  live  from  hand  to  mouth 
and  exercise  no  appreciable  influence. 

The  people  have  become  wise.  And  so  business 
now  talks  openly,  over  its  own  signature,  and  wins 
the  respectful  hearing  to  which  its  better  attitude 
entitles  it. 

The  agitation,  the  exposures,  the  muckraking  of 
the  last  two  decades  have  been  disturbing,  but  the 
net  result  is  wholesome. 

We  have  made  progress,  and  the  new  way  of 
lobbying  is  one  of  the  evidences. 


What  People  Are  Thinking — Editorial  Comment 

Connecticut 


New  Haven  Journal  Courier,  March  24,  1916 

A  WISE  UNDERTAKING 

There  is  serious  question  as  to  the  wisdom  of 
Government  ownership  of  an  armor-plate  plant. 

At  the  very  thought  visions  of  more  pork  in  the 
barrel  rise  up.  The  inefficiency  and  waste  with 
which  Government  ownership  is  commonly  asso- 
ciated are  disturbing  probabihties. 

If  our  program  of  increased  defenses  calls  for 
extensive  manufacture  of  armor-plate  for  the  navy 
and  munitions  for  the  army,  the  whole  subject  of 
private  and  Government  direction  will  in  all  proba- 
bility be  debated  and  determined. 

Should  it  be  found  that  private  ownership  would 
make  unfair  exactions  upon  the  federal  treasury,  a 
way  would  have  to  be  devised  to  put  a  stop  to  it. 

Certainly  a  lack  of  consideration  for  the  nation's 
expenditures  would  not  be  tolerable. 

But  is  the  first  step  which  Congress  appeared 
to  be  taking  toward  meeting  this  situation  as 
safe  and  sane  as  it  ought  to  be?  It  does  not 
seem  so. 


Bridgeport  Telegram,  March  27,  1916 
ROARING  FOR  MERCY 

.  .  .  There  is  no  particular  need  for  a  Government 
plant,  provided  that  existing  private  plants  are 
willing  to  manufacture  armor  plate  of  the  requisite 
quality  at  a  price  which  is  reasonable. 

The  demand  for  a  Government-owned  plant  exists 
only  because  the  armor  trust  in  the  past  has  not  been 
reasonable,  but  has  demanded  exorbitant  profits.  .  . 

*       *       * 

[We  believe  that  our  prices  in  the  past  have  been 
reasonable.  Certainly  they  have  been  less  than  has 
been  paid  for  armor  by  any  of  the  other  great  naval 
powers.  At  any  rate,  under  our  offer  the  Government 
is  absolutely  protected. 

Bethlehem  Steel  Company.] 

Hartford  Courant,  May  4,  1916 

j  ELEVEN  MILLIONS  FOR  A  FAD 

'  .  .  .  The  appropriation  for  this  proposed  Govern- 
ment plant  is  $4,000,000  larger  than  the  cost  of  the 
Bethlehem  Steel  Company's  armor  plant. 

The  Bethlehem  people  make  a  formal  offer  of  the 
use  of  their  plant  at  cost  prices.  Cost  prices  are  all 
that  we  could  get  out  of  this  $11,000,000  Govern- 
ment-owned plant,  and  these  prices  we  can  get  out 
of  the  Bethlehem  plant. 

By  using  this  Bethlehem  plant  we  can  avoid 
spending  over  again  the  $7,000,000  which  this 
Bethlehem  plant  cost,  and  also  the  $4,000,000  extra 
which  this  bill  adds  to  $7,000,000  as  the  cost  of  a 
Government  plant. 

If  it  is  economy  that  we  are  after,  the  way  to 
secure  it  is  to  use  the  armor  plate  plants  that 
we  now  have,  and  devote  this  $11,000,000  to 
some  public  purpose  that  has  no  fad  of  Govern- 
ment ownership  behind  it. 


If  it  is  economy  that  we  are  after,  the  way  to  secure  it  is  to  use  the  armor 
plate  plants  that  we  now  have,  and  devote  this  $11,000,000  to  some  public 

purpose  that  has  no  fad  of  Government  ownership  behind  it. 

— Hartford  Courant 
May  Jf,  1916 


What  People  Are  Thinking — Editorial  Comment 

Delaware 

WUmington  Every  Evening,  April  4,  1916 

THE  GOVERNMENT  AND  ARMOR 
PLATE 

.  .  .  And  there  is  not  a  citizen  of  ordinary  intelli- 
gence who  will  not  come  to  the  conclusion,  no  matter 
what  he  may  express  openly,  that  the  best  interests 
of  the  Government  and  the  people  would  be  served  by 
an  acceptance  of  the  steel  company's  offer. 

How  governments  in  general  conduct  operations 
of  this  character  is  well  known. 

Government  operation  of  such  enterprises  almost 
invariably  is  more  expensive  and  less  effective 
than  private  operation. 

A  Government  plant  would  make  armor 
plate  more  expensive,  not  cheaper. 

Congress  will  render  the  public  no  service, 
but  inflict  injury  upon  it,  by  engaging  in  the 
proposed  venture. 


A   Government  armor  plant   would   make 
armor  plate  more  expensive,  not  cheaper. 


— Wilmington  Every  Evening 
April  4, 1916 


What  People  Are  Thinking — Editorial  Comment 

District  of  Columbia 


Washington  Post,  May  25,  1916 

THE  ARMOR  PLATE  ISSUE 

.  .  .  There  is  no  logic  in  the  demand  for  an 
armor  plate  plant. 

The  only  purpose  it  could  serve  would  be  to  give 
further  encouragement  to  those  who  are  advocating 
Government  ownership  all  along  the  line. 

It  will  be  a  costly  experiment.  There  is  not  the 
slightest  assurance  that  the  cost  of  manufacture  at 
a  Government  plant  would  be  as  low  as  the  cost  of 
manufacture  at  the  well-organized  and  experienced 
private  plants. 

The  Butler  amendment  will  not  merely  save  the 
Government  $11,000,000,  but  may  actually  save 
several  million  dollars  annually  in  equipment. 


Washington  Post,  April  12,  1916 

NO  NEED  NOW  FOR  A  GOVERNMENT 
ARMOR  PLATE  PLANT 

The  published  statement  of  the  Bethlehem  Steel 
Company  addressed  to  the  members  of  Congress 
covers  so  fully  the  entire  armor  plate  situation  and  is 
so  eminently  fair  to  the  Government,  so  extremely 
favorable  for  the  country,  that  it  has  left  the  propo- 
sition to  estabhsh  a  Government  armor  plate  plant 
without  a  foot  to  stand  upon. 

With  this  most  open  and  frank  statement  of  the 
company  before  the  people  of  the  United  States, 
there  is  not  left  the  slightest  justification  for  any 
expenditure  by  the  Government  for  such  plant, 
and  in  this  time  of  deficient  revenues  and  heavy 
expenditures  for  imperative  needs  of  the  country,  it 
leaves  no  room  for  indulgence  in  appropriation  of 
millions  of  dollars  for  experimental  exploitations  in 
the  domain  of  manufacturing.  .  .  . 


It  will  be  a  costly  experiment.  There  is  not 
the  slightest  assurance  that  the  cost  of  manu- 
facture at  a  Government  plant  would  be  as 
low  as  the  cost  of  manufacture  at  the  well- 
organized  and  experienced  private  plants. 

—Washington  Post,  May  25, 1916 


What  People  Are  Thinking-^Editorial  Comment 


Geo 


gia 


Atlanta  Constitution,  May  25,  1916 


THE  RIGHT  WAY  TO  DO  IT 

The  Bethlehem  Steel  Company  has  begun  a 
series  of  advertisements  in  more  than  three  thousand 
daily  and  weekly  newspapers  in  the  United  States, 
with  a  view  to  informing  the  public  upon  its  side 
of  the  controversy  growing  of  the  proposition 
looking  to  the  establishment  of  a  Government 
armor  plant. 

In  the  first  advertisement  of  the  series  it  calls 
attention  to  the  fact  that  the  United  States  is  now 
buying  armor  plate  from  the  private  manufacturers 
at  a  price  less  than  that  paid  by  any  other  of  the 
great  naval  powers;  and  it  asks  why  the  Federal 
Government  should  invest  $11,000,000  in  a  plant 
under  these  circumstances  when,  after  the  initial 
expenditure  is  made,  it  can  manufacture  armor 
plate  no  cheaper  than  it  can  buy  it. 

The  assertions  in  this  statement  are  evidently 
to  be  amplified  with  evidence  supporting  them  in 
the  campaign  which  the  Bethlehem  Company  has 
undertaken. 

The  company  is  no  doubt  assured  of  the 
justness  and  correctness  of  its  position,  else 
it  would  not  have  set  out  to  attempt  to 
educate  the  people  of  the  United  States  to  its 
contention. 

The  Bethlehem  Steel  Company  adopted  and 
is  pursuing  the  correct  policy. 

The  American  public  is  not  an  unfair  or  a 
prejudiced  court. 

Given  both  sides  of  a  problem,  it  makes  up 
its  mind  on  the  basis  of  the  evidence  presented, 
and  ballot  box  decisions  following  free  and 
complete  discussion  never  go  far  wrong. 

Fdlure  to  take  the  public  into  their  confidence 
has  been  the  stumbling  block  of  railroad  and  other 
corporations  throughout  the  country  on  more 
than  one  occasion. 

There  is  no  doubt  that  the  public  is  suspicious; 
mystery  and  secrecy  have  always  been  the  greatest 
cause  for  imputation  of  venahty  and  criminaUty. 

The  Pennsylvania  Railroad  Company  has  made 
more  friends  not  only  in  its  own  territory,  but  the 
country  over,  through  its  poHcy  of  inviting  the 
public  confidence  through  the  newspapers,  than  it 


could  have  done  by  any  other  method  in  a  thousand 
years. 

Other  corporations  which  have  tried  this  system 
have  discovered  the  advantages  of  it. 

These  advantages  and  opportunities  are  there 
for  those  who  will  take  them.  .  . 

.  .  .  How  much  better  would  be  the  relations 
between  the  people  and  all  of  the  great  cor- 
porations that  serve  them  if  the  corporations 
would  but  get  this  viewpoint  and  act  upon  it. 

Savannah  News,  May  24,  1916 

FRANK  TALK  TO  THE  PUBLIC 

In  the  past  it  has  happened  a  good  many  times 
that  whenever  anybody  wished  to  get  his  side  of 
a  controversy  before  the  public  he  wrote  a  letter 
to  a  newspaper  to  be  published  free  of  charge,  or 
sought  to  have  himself  interviewed,  at  no  cost 
to  himself. 

And  where  there  was  real  news  value  in  the  letter 
or  the  subject  matter  of  the  interview  the  news- 
paper was  glad  to  pubUsh  it;  but  the  complaisance 
of  the  newspaper  weis  abused  and  used  until,  as 
every  newspaper  man  knows,  this  matter  of  giving 
away  space  to  anybody  and  everybody  for  the 
airing  of  his  private  views  and  for  his  private 
profit  became  a  nuisance — and  a  costly  one,  to  the 
newspaper,  at  that. 

Because  of  aU  this,  it  is  worth  while  to  call  atten- 
tion to  the  policy  of  the  Bethlehem  Steel  Company 
in  which  Charles  M.  Schwab  is  the  principal  figure. 

This  company  is  opposed  to  the  building  of  an 
$11,000,000  armor  plate  factory  by  the  Govern- 
ment. 

As  to  whether  it  is  right  or  wrong,  or  whether 
the  Government  should  or  should  not  build  the 
plant,  this  present  discussion  is  not  concerned. 

The  important  thing,  at  this  moment,  is  that  the 
company,  instead  of  hiring  a  press  agent  to  work 
off  on  the  newspapers  of  the  country  a  lot  of  pub- 
Ucity  stuff,  to  be  printed  free  and  handed  to  the 
pubUc  as  news,  is  buying  such  newspaper  space  as 
it  thinks  it  needs  and  is  stating  its  position  frankly 
and  squarely  in  what,  as  is  apparent  to  everybody's 
eyes,  is  an  advertisement. 


What  People  Are  Thinking — Editorial  Comment 


Geo 


rgia- 


Continued 


It  may  be  that  the  public  will  not  agree  with 
the  Bethlehem  Company  and  it  may  be  that  it 
will;  but,  either  way,  it  will  know  that  the  company 
has  come  before  it  and  is  saying  its  own  say  and 
paying  for  the  privilege  of  saying  it;  and  is  not 
endeavoring  to  slip  something  into  a  newspaper  that 
is  an  advertisement  of  the  Bethlehem  Company  but 
apparently  is  a  news  item. 

Some  persons  and  some  concerns  frankly  try  to 
"work"  the  newspapers;  other  persons — perhaps 
because  the  abuse  has  been  permitted  so  long — 
actually  think  they  have  the  right  to  use  the  news- 
papers to  publish  something  of  interest  to  them- 
selves alone,  that  will  put  money  into  their  pockets. 

A  vivid  contrast  with  either  of  these  classes  is 
very  refreshing. 


The  Bethlehem  Steel  Company  adopted 
and  is  pursuing  the  correct  policy. 

The  American  public  is  not  an  unfair 
or  a  prej  udiced  court. 

Given  both  sides  of  a  problem,  it  makes 
up  its  mind  on  the  basis  of  the  evidence 
presented,  and  ....  decisions  fol- 
lowing free  and  complete  discussion  never 
go  far  wrong. 

— Atlanta  Constitution 
May  26,  1916 


10 


What  People  Are  Thinking— Editorial  Comment 

Illinois 


Chicago  Herald,  March  26,  1916 

REDUCTION  IN  ARMOR  PLATE  COST 

.  .  .  Several  papers  see  in  the  new  offer  a  direct 
result  from  the  Government's  tentative  plan  to 
disregard  armor  plate  manufacturers  and  join  the 
New  York  World  in  referring  to  the  manufacturers 
as  the  "chastened  eu-mor  plate  trust." 

The  World  thinks  the  offer  fair,  says  that  private 
manufacture  should  be  encouraged,  and  that 
Government  plants  "eu-e  not  an  end  in  themselves, 
but  only  a  means  to  important  ends." 

So  long,  therefore,  thinks  the  World,  as  manufac- 
turers do  not  seek  to  extort  unwarranted  profits 
from  the  Government,  and  are  willing  to  do  the 
Government's  work  properly  and  expeditiously, 
there  need  be  no  talk  of  Government  endeavor  in 
this  direction.  .  .  . 


Chicago  New8,  May  26,  1916 

GOING  TO  THE  PEOPLE 

Big  business  concerns  which  have  extensive 
relations  with  the  Federal  Government  should 
adopt  the  excellent  new  policy  now  being  fol- 
lowed by  the  Bethlehem  Steel  Company. 

It  is  going  to  the  people  to  present  its  case  instead 
of  resorting  to  the  old  practice  of  employing  lobby- 
ists to  work  under  cover. 

Mr.  Schwab's  great  corporation  admits  that  here- 
tofore it  has  made  a  mistake  in  keeping  silent. 


It  promises  to  adhere  no  longer  to  that 
mistaken  policy. 

The  Bethlehem  Steel  Company  has  been  supplying 
the  Government  with  armor  plate  for  battleships. 

It  has  in  existence  a  valuable  plant,  useful  pri- 
marily only  for  the  purpose  of  making  armor  plate 
for  the  United  States  Navy. 

Members  of  Congress  assert  that  the  prices 
charged  for  armor  plate  by  the  company  were 
exorbitant. 

There  is  pending  in  Congress  a  measure  authoriz- 
ing the  establishment  of  a  Government  armor  plate 
plant  to  cost  $11,000,000. 

Passage  of  this  measure  would  serve  to  reduce 
very  much,  if  not  destroy,  the  value  of  the  armor 
plate  plant  of  the  Bethlehem  Steel  Company. 

The  officers  of  the  corporation  assert  that  they  are 
prepared  to  manufacture  armor  plate  for  the  United 
States  at  prices  which  the  Government  itself  shall 
fix  as  being  fair. 

They  argue,  therefore,  that  for  the  Government  to 
go  into  the  armor  plate  business  would  be  both  a 
waste  of  public  funds  and  an  injustice  to  the 
American  citizens  who  have  made  a  large  investment 
in  an  armor  plate  plant. 

Whatever  the  merits  of  this  controversy  may 
be,  the  officers  of  the  Bethlehem  Steel  Com- 
pany are  to  be  commended  for  taking  the  dis- 
cussion of  the  issues  involved  frankly  to  the 
American  people. 

In  return  for  this  showing  of  frankness  and 
of  confidence  in  the  people's  desire  that  justice 


Certainly  it  is  the  worst  possible  policy  for  the 
Government  to  go  to  manufacturing  armor  plate  if  it  can 
get  a  satisfactory  product  at  an  honest  price  from  a 
manufacturing  concern  equipped  to  perform  the  service. 

—Chicago  News,  May  26, 1916 


11 


What  People  Are  Thinking — Editorial  Comment 


Illinois^ 


■Continued 


shall  prevail,  the  people  ought  to  study  the 
arguments  presented  to  them  by  the  corpora- 
tion< 

Certainly  it  is  the  worst  possible  policy  for 
the  Government  to  go  to  manufacturing 
armor  plate  if  it  can  get  a  satisfactory  product 
at  an  honest  price  from  a  manufacturing 
concern  already  equipped  to  perform  the 
service. 


Chicago  Herald,  May  27,  1916 

A  BUSINESS  PROPOSITION 

The  Bethlehem  Steel  Company,  in  advertise- 
ments it  is  now  publishing,  frankly  admits  that  it 
has  made  a  mistake  in  business  policy. 

The  mistake  was  in  keeping  quiet  under  repeated 
accusations  that  the  armor  manufacturers  have 
"gouged"  the  Government. 

These  accusations  have  so  often  been  made 
without  pubUc  refutation  that  they  have  come  to 
be  beUeved. 

As  a  result  the  Senate  has  passed  a  bill  proposing 
to  spend  $11,000,000  as  a  starter  on  an  armor  plant. 

We  are  not  dependent  on  the  assertions  of 
armor  makers  for  evidence  that  the  United 
States  has  been  paying  less  for  armor  than 
other  nations.  Senator  Weeks,  in  a  com- 
prehensive speech  on  March  16,  in  opposition 
to  the  pending  bill,  showed  from  official 
records  that  armor  prices  the  year  before  the 
war  were:  In  Austria,  $511  a  ton;  in  Russia, 
$510;  in  England,  $503;  in  Germany  and  Japan 
$490;  in  France,  $460;  in  the  United  States, 
$425. 

In  view  of  the  fact  that  wages  are  lower  in  all 
these  countries  than  here,  it  seems  clear  that  the 
margins  of  profit  obtained  by  the  American  makers 
are  by  no  means  excessive. 

The  Bethlehem  Steel  Company  publicly  offers 
to  make  armor  for  an  indefinite  period  at  what- 
ever price  the  Government  shall  fix. 

It  is  difficult  to  imagine  a  fairer  business  pro- 
position than  that. 


It  is  difficult  to 
imagine  a  fairer 
business  proposi- 
tion than  that. 


— Chicago  Herald 
May  27y  1916 


In  the  light  of  it  the  sinking  of  $11,000,000,  just 
as  a  starter,  in  a  Government  plant  will  be  hard  to 
justify  to  the  business  sense  of  the  American  people. 


Chicago  News,  July  6,  1916 

THE  COST  OF  ARMOR  PLATE 

In  its  latest  announcement  to  the  public  on  the 
subject  of  armor  plate  the  Bethlehem  Steel  Company 
presents  an  appeal  for  desirable  publicity.  It  is  an 
appeal  that  cannot  permanently  be  ignored  by 
interested  lawmakers  at  Washington. 

The  national  House  of  Representatives  has  passed 
the  measure  appropriating  $11,000,000  for  the  con- 
struction of  a  Government  plant  for  the  manufac- 
ture of  armor  plate. 

An  amendment  providing  that  books  be  so  kept  in 
connection  with  the  plant  as  to  show  exactly  how 
much  armor  plate  costs  when  made  by  the  Govern- 
ment was  voted  down. 

In  commenting  on  this  action  the  Bethlehem  Steel 
Company  says:  "Advocates  of  a  Government  plant 
expect  to  get  armor  cheaper.  Why,  then,  refuse  to 
look  facts  in  the  face?"  The  people,  as  the  company 
asserts,  are  entitled  to  know  the  exact  cost  of  the 
Government-made  product. 

This  demand  for  publicity  should  meet  with  public 
approval,  even  though  it  is  made  by  a  private  con- 


12 


W^hat  People -Are  Thinking^Editorial  Comment 


Illinois- 


Continued 


If  the  steel  companies  are  willing  to  go  two- 
thirds  of  the  way,  it  would  seem  as  though  the 
administration  might  manage  to  hobble  the  other 
one-third  and  see  if  they  cannot  get  together  and 
save  some  of  the  public  funds. 


-Peoria  Star,  June  1,  1916 


cern  that  admittedly  has  an  interest  in  preventing 
the  Government  from  going  into  the  armor  plate 
business  on  its  own  account. 

If  the  armor  plate  plant  appropriation  is  to  be 
approved  by  the  Senate,  that  body  at  least  should 
insist  upon  the  adoption  of  accounting  methods 
showing  whether  the  venture  is  wise  from  a  com- 
mercial point  of  view. 

The  Government  should  let  the  people  know  how 
undertakings  managed  by  it  directly  affect  the 
interests  of  the  taxpayers. 


Peoria  Transcript,  April  16,  1916 

PUBLICITY  THE  BEST  POLICY 

The  Bethlehem  Steel  Company,  in  Circular  No.  9, 
makes  this  significant  statement: 

"The  mistake  of  the  Bethlehem  Steel  Company  has 
been  that  it  kept  quiet.  We  have  allowed  irresponsi- 
ble assertions  to  be  made  for  so  long  without  denieil 
that  many  people  believe  them  now  to  be  proven 
facts." 

Without  considering  the  merits  of  the  steel  com- 
pany's argument  against  the  proposed  Government 
armor  plant,  the  confession  merits  comment.    The 


same  belated  conclusion  was  reached  by  the  railroads 
of  the  country  and  by  many  public  utilities  which 
despaired  of  getting  a  square  deal  from  political 
lobbyists  and  public  office-holders. 

Nothing  is  gained  by  a  corporation  which 
yields  supinely  to  misrepresentations  and 
abuse. 

The  people  not  only  are  the  final  judges  of 
corporate  action,  but  they  are  the  most  merci- 
ful ones  when  the  facts  are  substantially  sub- 
mitted and  reiterated  with  such  frequency  as 
to  fix  them  in  the  public  mind.  .  .  . 


Nothing  is  gained  by  a  corporation 
which  yields  supinely  to  misrepresenta- 
tions and  abuse. 

The  people  not  only  are  the  final  judges 
of  corporate  action,  but  they  are  the  most 
merciful  ones  when  the  facts  are  sub- 
stantially submitted  and  reiterated  with 
such   frequency    as   to   fix   them   in   the 

public  mind.  .  . 

— Peoria  Transcript 
April  16,  1916 


13 


What  People  Are  Thinking— Editorial  Comment 


Illinois 


—Continued 


Peoria  Star,  June  1,  1916 

ARMOR  PLATE 

.  .  .  Inasmuch  as  the  Bethlehem  Steel  Company 
is  now  wilHng  to  do  everything  the  Government 
wants  and  will  do  it  at  the  Government's  price,  it 
would  seem  to  the  average  man  that  the  best  thing 
the  Government  can  do  is  to  forget  the  past  and  take 
advantage  of  the  future. 

If  the  steel  companies  are  willing  to  go 
two-thirds  of  the  way,  it  would  seem  as  though 
the  administration  might  manage  to  hobble 
the  other  one-third  and  see  if  they  cannot  get 
together  and  save  some  of  the  public  funds. 

The  people  are  paying  a  war  tax  of  nearly  a 
hundred  million  dollars  a  year  now. 

Why  keep  adding  to  it? 


The  Rockford  Register  Gazette,  May  23,  1916 

"PORK"  IN  THE  ARMOR  BILL 

.  .  .  The  Bethlehem  Company  makes  the  plain 
assertion  that  a  Government  plant  cannot  make 
armor  any  cheaper  than  it  can  make  it,  and  the 
Bethlehem  Company  is  prepared  to  manufacture 
armor  at  any  price  which  the  Government  itself 
shall  name  as  fair. 

This  being  true,  why  should  $11,000,000  of  the 
people's  money  be  wasted  to  build  a  Government 
plant? 

The  Government  should  not  engage  in  the  produc- 
tion of  any  article  in  competition  with  private  cor- 
porations, where  the  latter  will  agree  to  furnish  the 
article  as  cheaply  as  the  Government  itself  can 
make  it. 


The  Government  has  enough  on  hand  to 
attend  to  now,  and  the  people  are  already  too 
heavily  burdened  with  taxes  to  justify  any 
expensive  experiments  on  the  part  of  Uncle 
Sam. 

The  Bethlehem  Company  has  a  tremendous 
investment  and  is  a  heavy  employer  of  labor. 

It  understands  the  armor  plate  business  better  and 
more  thoroughly  than  the  Government  can  under- 
stand it  after  it  has  had  years  of  costly  experience. 

The  House  of  Representatives  should  defeat 
this  Democratic  "pork"  bill. 


Elgin  News,  April  4,  1916 

PATRIOTS 

Not  all  the  patriots  of  the  land  are  in  the  halls  of 
Congress  nor  in  politics.  In  case  of  stress  there  are 
many  men  outside  that  would  be  of  far  more  service 
to  this  Government  than  any  or  all  of  those  that 
have  so  much  to  say  against  big  men  and  the  big 
business  they  have  built  up. 

For  instance  here  is  the  offer  made  to  the  Govern- 
ment by  the  Bethlehem  Steel  Company  in  regard  to 
armor  plate  which  the  Government  proposes  to 
manufacture  itself:  .  .  . 


The  Government  has  enough  on  hand  to  attend  to  now,  and  the  people  are 
already  too  heavily  burdened  with  taxes  to  justify  any  expensive  experiments 

on  the  part  of  Uncle  Sam. 

—The  Rockford  Register  Gazette,  May  23, 1916 


14 


What  People  Are  Thinking—Editorial  Comment 

Indiana 


Indianapolis  News,  April  24,  1916 

THE  BETHLEHEM  ARMOR 
ARGUMENT 

The  Bethlehem  Steel  Company  is  spending  a 
considerable  sum  of  money  on  printing  and  postage. 

It  has  on  its  mailing  list,  presumably,  every  news- 
paper of  any  consequence,  and  every  congressman, 
whether  of  consequence  or  not. 

The  company  is  determined  to  give  full  publicity 
to  its  side  of  the  armor  plate  controversy.  The  cam- 
paign is  being  carried  on  with  energy. 

The  company  has  issued  its  twelfth  bulletin,  sup- 
plemented by  a  signed  statement  from  six  minority 
members  of  the  House  Committee  on  Naval  Affairs. 
This  committee  has  favorably  reported  the  Tillman 
bill  to  appropriate  $11,000,000  for  a  Government 
armor  plant.  The  minority  calls  attention  to  certain 
statements  which  are  worthy  of  consideration. 

The  naval  bill  this  year  will  carry  an  appropriation 
undoubtedly  of  more  than  $200,000,000.  This  bill 
appropriates  $11,000,000  for  an  armor  plate  factory 
of  20,000  tons  capacity.  The  estimates  for  this  plant 
were  made  in  1913.  Since  that  time  labor  and  mate- 
rial have  advanced  in  cost  approximately  40  per 
cent.    If  this  plant  is  built  under  present  conditions, 


or  at  any  time  during  the  continuance  of  the  war  in 
Europe,  it  will  probably  cost  the  Government 
$15,000,000.  We  believe  that  this  money  could 
be  spent  more  wisely  at  this  time  on  the  navy 
afloat  than  on  the  navy  ashore.  .  .  . 


Terre  Haute  Star,  May  26,  1916 
Indianapolis  Star,  May  25,  1916 
Muncie  Star,  May  24,  1916 

TOO  MUCH  GOVERNMENT 
OWNERSHIP 

The  Bethlehem  Steel  Company  is  making  an 
appeal  to  the  public  which  should  be  heeded  and 
impressed  upon  the  people's  representatives  in  the 
Lower  House  of  Congress. 

It  is  giving  publicity  to  data  that  were  known  to  the 
Democratic  Senators  when  they  passed  the  bill 
to  provide  for  a  Government-owned  armor  plate 
plant. 

The  figures,  which  are  in  the  public  records  and 
would  not  be  presented  if  they  are  false  and  could  be 
easily  refuted,  show  thejshallowness  of  the  contention 
that  the  Government  is  being  held  up  on  armor 
plate.  .  .  . 


I 


. . .  The  chief  object  is  to  prevent  the  Govern- 
ment from  being  imposed  on  and  to  be  assured 
of  capacity  to  turn  out  armor  plate. 

The  agitation  has  had  a  good  effect,  but  there 
does  not  seem  to  be  any  need  for  the  proposed 
legislation. 

— Indianapolis  News,  June  2,  1916 


15 


What  People  Are  Thinking — Editorial  Comment 


Indiana- 


Continued 


...  It  is  high  time  for  the  people  to  make 
themselves  understood  in  Washington. 

No  one  who  has  taken  even  superficial  notice  of 
governmental  effort  believes  that  £tny  one  of  the 
three  proposals  will  result  in  anything  except  great 
waste,  and  vastly  increased  supplemental  appropria- 
tions. Our  Government  is  in  the  hands  of  a  lot  of 
impractical  visionaries  and  intensely  practical  pro- 
motors,  who  should  be  made  to  understand  public 
sentiment  without  further  delay  and  before  they 
have  committed  this  country  to  a  disastrous  program 
of  public  ownership. 

Indianapolis  News,  June  22,  1916 

TRAINED  INDUSTRIES 

.  .  .  There  is  Uttle,  if  any,  disposition  to  take 
advantage  of  a  war.  Under  such  a  system  the 
Government  would  obtain  a  maximum  efficiency  at 
a  minimum  expense.  It  would  do  away  with  the 
necessity  for  many  Government  plants,  although 
some,  of  course,  should  be  maintained. 

Dependence  would  naturally  be  placed  on  the 
registered  factories,  from  each  of  which  certain 
material  could  be  expected  at  a  reasonable  cost. 

In  this  connection  it  is  significant  that  the 
Bethlehem  Steel  Company  now  proposes  to  make 
armor  plate  for  the  Government  "at  cost." 

This,  explains  the  head  of  the  company,  is  not 
"a  deathbed  repentance." 

It  is  an  indication  that  the  steel  company  has 
caught  the  spirit  of  industrial  preparedness. 

The  Dearborn  Independent,  June  30,  1916 

AN  IMPROPER  APPROPRIATION 

The  Independent  cannot  agree  with  the  majority 
in  Congress  as  to  the  propriety  of  appropriating 
miUions  of  dollars  to  establish  a  Government  armor 
plant,  not  only  for  the  reason  that  the  entrance  of 
the  nation  into  commercial  lines  is  undemocratic  in 
principle,  but  because  the  duplication  of  existing  and 
sufficient  producing  capacity  is  an  economic  mistake. 

The  only  ground  that  can  be  offered  is  the  inability 
of  private  plants  to  supply  the  needs  of  the  country. 


This  is  admittedly  not  the  case,  for  except  in  extra- 
ordinary times  present  capacity  exceeds  demand, 
and  existing  plants  can  easily  enlarge  if  the  situation 
warrants.  In  fact,  half  the  cry  for  increased  armament 
is  born  of  the  fear  that  extensive  industrial  works 
now  occupied  in  foreign  trade  will  be  forced  into 
idleness  when  the  war  in  Europe  ends.  There  has 
already  been  a  woeful  economic  waste  in  investment 
for  the  satisfaction  of  a  demand  that  can  be  but 
temporary. 

It  is  argued  that  the  Government  can  produce 
more  cheaply  than  it  can  buy.  This  is  not  at  all 
certain;  and  experience  positively  denies  it,  even  in 
cases  where  there  is  permanence  in  the  demand. 
To-day  private  business  owners  find  it  economy  to 
buy  of  speciaUzed  industries,  even  where  already 
fitted  to  produce. 

A  remedy  for  overcharging  the  Government  rests 
with  its  own  agents.  In  case  of  emergency  they  can 
take  charge  of  and  dictate  the  price,  provided  of 
course  they  allow  a  reasonable  figure. 

It  is  claimed  the  United  States  has  been  enjoying 
lower  prices  for  armor  plates  than  has  any  other 
country.  If  this  is  a  fact  there  is  no  reason  why  the 
Government  should  desire  to  change.  Not  only  that, 
but  an  existing  steel  company  offers  armor  plate  at  a 
lower  figure  than  ever,  and  even  offers  to  let  the 
Navy  Department  name  a  price. 

For  such  reasons  we  are  opposed  to  the  waste 
of  money  in  the  direction  of  a  Government 
plant. 


New  Castle  Times,  April  1,  1916 

THE  ARMOR  PLATE  BILL 

.  .  .  Now  that  a  bill  is  in  Congress  for  a  Govern- 
ment plant  the  Bethlehem  Company  has  offered  to 
furnish  plate  to  the  Government  at  less  than  $400 
a  ton  for  the  next  three  years,  or  it  will  make  the 
plate  on  a  percentage  basis,  the  Government  putting 
inspectors  in  the  plant  to  keep  an  accurate  cost  of 
every  operation. 

Since  this  offer  has  been  made  it  is  likely  that  the 
Government  will  not  engage  in  the  business,  as  it  is 
the  fixed  policy  not  to  do  anything  that  can  be  done 
in  a  private  way  as  well  as  economically. 


16 


What  People  Are  Thinking — Editorial  Comment 

Iowa 


Des  Moines  Register  and  Leader,  April  II,  1916 

BETHLEHEM  BULLETINS 

The  sudden  interest  the  Bethlehem  Steel  Works 
are  taking  in  newspaper  pubUcity  is  one  of  the 
manifestations  of  the  season  worthy  of  more  than 
passing  notice. 

We  do  not  know  that  Mr.  Schwab's  company 
ever  had  a  maiUng  list  before  the  Senate  passed 
the  bill  for  a  Government  plant. 

But  it  assuredly  has  one  now,  and  it  is  being 
used  to  make  up  for  lost  time. 

The  daily  bulletins  of  the  great  steel  corporation 
are,  of  course,  very  much  in  the  nature  of  locking 
the  door  after  the  horse  is  gone. 

If  such  a  campaign  was  worth  while  at  all  it 
was  needed  before  Senator  Tillman's  armor  plate 
bill  had  been  put  to  vote. 

But  better  late  than  never  is  not  a  bad  motto 
for  this  and  a  number  of  other  industrial  organiza- 
tions. The  Standard  Oil  Company  might  take  a 
lesson  from  Bethlehem  troubles. 

Sooner  or  later  they  all  come  to  recognize 
that  the  people  are  entitled  to  know. 


Des  Moines  Register  and  Leader,  April  17,  1916 
PUBLICITY 

In  the  ninth  bulletin  issued  by  the  Bethlehem 
Steel  Corporation  since  the  Tillman  Government 
armor  plate  bill  passed  the  Senate,  Mr.  Schwab 
and  his  associates  make  an  announcement  of  the 
utmost  significance  to  everybody. 

Prefacing  the  announcement  with  this  statement: 

"The  mistake  of  the  Bethlehem  Steel  Company 
has  been  that  it  kept  quiet. 

We  have  allowed  irresponsible  assertions  to  be 
made  for  so  long  without  denial,  that  many  people 
now  believe  them  to  be  proven  facts." 

Mr.  Schwab  as  chairman,  and  Eugene  G.  Grace  as 
president  say  officially: 

"We  should  make  the  mistake  of  silence  no 
longer.  Henceforth  we  shall  pursue  a  poUcy  of 
pubUcity.  Misinformation  will  not  be  permitted 
to  go  uncorrected.    It  is  and  has  been  the  policy 


of  our  Company  to  deal  with  the  American  Govern- 
ment in  the  frankest  and  most  liberal  manner.  We 
expect  henceforth  to  place  the  details  of  all  these 
relations  before  the  American  people.  We  have 
offered  to  make  armor  for  the  Government  at  any 
price  the  Government  shall  name  as  fair.  Cer- 
tainly the  widespread  pubUcation  of  such  an  offer 
is  an  effective  challenge  to  our  own  good  faith." 

Anyone  can  see  at  a  glance  that  the  effect  of  this 
will  not  be  confined  to  Bethlehem  Steel. 

The  poUcy  of  every  great  industrial  corporation 
will  be  influenced,  if  not  directly  modified. 

The  old  notion  of  secrecy  will  be  discredited 
among  business  leaders.  .  . 


The  Keokuk  Daily  Gate  City 

BETHLEHEM  COMPANY  PUBLICITY 

Suspicion  is  the  father  of  discontent,  £uid  some 
people  are  never  satisfied. 

Had  they  nothing  to  find  fault  with  and  were 
life  forever  to  move  in  a  smooth  channel  it  is  a 
safe  bet  there  would  be  those  prone  to  complain. 

Writers  in  the  press  who  make  capital  of  attack- 
ing "big  business"  condemn  the  Bethlehem  Steel 
Company's  advertising  campaign  against  the  naved 
bill's  armor  plant  provision  on  the  ground  that  it 
is  an  attempt  to  play  poUtics  by  appealing  to  the 
public. 

The  method  of  the  Bethlehem  Company's  propa- 
ganda is  obviously  right  and  is  exactly  in  accord 
with  the  poUcy  which  critics  of  business  are  always 
clamoring  for. 

Here  is  a  great  corporation  frankly  discussing 
its  business  in  the  open. 

When  corporations  are  silent  in  regard  to  their 
affairs  they  are  condemned  for  star  chamber  methods 
of  procedure;  when  they  publish  the  facts  of  their 
business  to  the  public  they  are  condemned  for 
trying  to  confuse  the  pubUc  mind. 

There  is  no  justice  or  sense  in  this  sort  of 
carping. 

Why  not  be  fair? 


17 


What  People  Are  Thinking— Editorial  Comment 


I 


owa- 


Continued 


Ottumwa  Courier,  March  31,  1916 

ARMOR  PLATE  PRICES 

...  If  the  Congressmen  are  interested  in  saving 
money  for  the  Government; 

If  they  are  interested  in  bettering  our  industrial 
situation ; 

If  they  are  interested  in  national  prosperity  rather 
than  in  something  to  parade  before  the  people  as  a 
fake  public  benefit; 

They  will  investigate  the  facts  submitted  by  the 
Bethlehem  Steel  Company,  to  see  whether  the  sup- 
posed advantages  of  Government  manufacture  of 
armor  plate  are  real  or  merely  theoretical. 


OttMmwa  Courier,  June  3,  1916 

AN  UNNECESSARY  SLAP 

.  .  .  Proofs  were  submitted  and  not  contra- 
dicted, that  armor  plate,  per  ton,  costs  the  Govern- 
ment of  the  United  States  less  than  any  other  first 
class  power. 

The  armor  plate  makers  are  willing  to  reduce  the 
cost  even  further,  rather  than  have  their  expensive 
factories  and  machinery  rendered  useless  by  the 
establishment  of  the  Government  plant. 

They  submitted  a  fair  proposition  and  it 
was  turned  down. 

Now  Congress  is  going  into  the  armor  plate  busi- 
ness for  itself  and  is  going  to  start  off  with  an  expen- 
diture of  $11,000,000  for  a  plant. 


That  means  private  capital  will  cease  to  be  inter- 
ested in  the  making  of  armor  plate.  It  will  be  up  to 
the  Government  to  enlarge  its  plant  so  that  it  can 
take  care  of  the  country's  needs  in  time  of  war. 

It  looks  as  though  in  taking  a  step  which  will 
undoubtedly  discourage  the  erection  of  privately 
owned  munitions  works,  Congress  has  been  the  very 
first  to  grievously  offend  against  the  new  spirit  of 
industrial  preparedness. 

Ottumwa  Courier,  July  6,  1916 

PRICES  ON  ARMOR  WANTED 

The  proposal  was  made  in  the  United  States 
Senate  yesterday  that  steps  be  taken  to  determine 
a  fair  price  for  armor  plate  manufactured  by  private 
corporations.  Thus  far  Congress  has  shown  an 
intention  to  proceed  with  Government  manufacture 
of  armor  without  regard  to  its  real  cost  and  merely 
to  "take  the  profit  out  of  war."  It  seems  that  the 
publicity  work  of  the  Bethlethem  Steel  Company, 
in  its  efforts  to  show  that  it  is  selling  the  United 
States  better  armor  plate  at  less  cost  than  is  the 
case  with  any  European  firm  and  country,  is 
exciting  enough  public  interest  to  compel  Congress 
to  look  into  the  matter. 

Figures  compiled  by  the  Bethlehem  Steel  Company 
and  designed  to  show  that  Government  manu- 
facture of  armor  will  be  an  extravagance  and  an 
imposition  on  the  taxpayers,  have  enlisted  many 
people  on  that  side  of  the  proposition. 


No  great  corporation  need  be  afraid  of 
coining  squarely  before  the  American 
people  if  it  comes  frankly  and  without 
the  purpose  of  deceit. 

The  people  are  fair  when  they  know  all 
the  facts,  and  the  policy  of  corporation 
publicity  will  place  the  facts  before  them. 

— Dubuque  Telegraph-Herald 
May  31,  1916 


18 


What  People  Are  Thinking — Editorial  Comment 


I 


I 


owa- 


Dubuque  Telegraph-Herald,  March  31,  1916 

A  GOVERNMENT  ARMOR  PLANT 

In  the  annual  report  of  the  Bethlehem  Steel 
Corporation,  Charles  M.  Schwab  says: 

"We  will  agree  to  permit  any  well-known  JBrm  of 
chartered  public  accountants  to  inventory  our 
plant  and  make  careful  estimates  of  the  cost  of 
manufacture;  with  that  data  in  hand  we  will  meet 
with  the  Secretary  of  the  Navy  and  agree  to  manu- 
facture armor  at  a  price  which  will  be  entirely  satis- 
factory to  the  Secretary  of  the  Navy  as  being  quite 
as  low  as  the  price  at  which  the  Government  could 
possibly  manufacture  armor  on  its  own  account, 
after  taking  into  account  all  proper  charges." 

This  proposition  not  only  meets  the  Govern- 

ment  half  way,  but  all  the  way. 

It  cannot  make  the  case  for  Government  owner- 
ship feel  particularly  proud  of  itself. 

Yet  papers  Uke  the  New  York  World  wax  richly 
ironic  over  Mr.  Schwab's  statement  that  a  Govern- 
ment armor-plate  miU  would  render  useless  the 
$7,000,000  invested  in  Bethlehem's  plant.  "Stock- 
holders during  the  year,"  says  the  World,  "had  to 
endure  a  rise  in  the  market  price  of  their  shares  from 
around  $46  to  $600,  now  off  to  $520.  If  the  com- 
pany had  charged  to  depreciation  the  whole  armor 
plant  cost,  there  would  have  been  left  for  common 
shareholders  a  profit  on  the  year  of  hardly  70  per 
cent." 

The  Bethlehem  Steel  Corporation  is  admittedly 
prospering.  On  that  account,  no  doubt,  it  owes  the 
World  and  the  rest  of  the  country  an  apology. 

But  this  prosperity  alone  is  not  sufficient  to  justify 
the  Government  in  virtually  destroying  $7,000,000 
in  private  capital,  and  devoting  $11,000,000  of  public 
capital  to  the  purpose  of  making  armor  plate  more 
costly  to  the  navy  than  it  is  now. 

Dubuque  Telegraph-Herald,  May  31,  1916 
GOING  TO  THE  PEOPLE 

When  great,  rich  and  powerful  corporations  learn 
to  appeal  to  the  people  as  to  a  court  of  fair  play, 
great  progress  has  been  made  in  democracy  in  this 
land  of  the  free,  and  we  are  getting  on. 


Continued 


And  that  sort  of  thing  is  becoming  common. 

The  latest  corporation  to  do  it  is  the  Bethlehem 
Steel  Company,  which  has  begun  a  country-wide 
advertising  campaign  to  set  forth  its  case — and  what 
is,  in  its  opinion,  the  nation's  case — against  Govern- 
ment munition  factories. 

Placing  all  its  cards  upon  the  table,  it  proceeds  to 
argue  its  cause  before  the  supreme  court  of  public 
opinion. 

Regardless  of  the  merits  of  the  case,  this  procedure 
cannot  fail  to  win  appreciation.  It  is  a  refreshing 
change  from  the  old  methods  of  corporations. 

It  used  to  be  that  the  people  were  the  very  last 
they  turned  to. 

If  they  had  something  to  beat  or  something  to  put 
over,  they  went  to  the  man  who  pulled  the  strings, 
and  the  party  bosses  saw  the  legislative  bosses  and 
the  thing  was  done. 

That  day  is  gone — or  going  rapidly — and  there  is 
no  better  evidence  of  that  than  such  tactics  as  these 
new  ones  of  the  Bethlehem  Steel  Company.  .  .  . 

No  great  corporation  need  be  afraid  of  com- 
ing squarely  before  the  American  people  if  it 
conies  frankly  and  without  the  purpose  of 
deceit. 

The  people  are  fair  when  they  know  all  the 
facts,  and  the  policy  of  corporation  publicity 
will  place  the  facts  before  them. 

The  Herald  is  glad  to  praise  this  new  policy  of 
Bethlehem  Steel,  even  though  it  does  not  entirely 
agree  with  the  company's  case. 

There  is  something  innately  wrong  in  having 
private  profits  flow  out  of  the  manufacture  of  the 
tools  of  war,  profits  so  attractive  that  it  is  a  paying 
investment  for  munitions  manufacturers  to  inculcate 
the  spirit  of  war.  We  know  that  they  have  done 
that  in  Europe,  and  we  know  that  if  there  are  no 
private  profits  in  the  industry  in  this  country,  there 
will  be  no  temptation  for  anybody  to  stir  up  the  war 
spirit  here. 

Nevertheless,  many  honestly  differ  with  this  view 
and  they  have  a  right  to  their  opinions.  We  can 
believe  that  Bethlehem  Steel  is  wrong,  and  still 
applaud  the  wisdom  of  its  decision  to  lay  its  case 
before  the  people. 


19 


What  People  Are  Thinking— Editorial  Comment 


I 


v_^     T  ▼     C%>  —Continued 


The  Keokuk  Daily  Gate  City,  June  5,  1916 

TILLMAN  SEES  THE  LIGHT 

Senator  Tillman,  who  is  chairman  of  the  Senate's 
Naval  Committee,  has  said  that  it  would  be  unfor- 
twiate  for  the  navy  to  manufacture  its  own  armor; 
that  "it  would  be  better  if  we  should  have  the  manu- 
facturers supply  the  Government  at  a  reasonable 
price." 

No  inteUigent  person  will  question  the  soundness 
of  this  view. 

If  the  Government  makes  armor  under  the  plan 
that  has  been  proposed,  it  will  waste  $11,000,000  of 
public  money,  and  by  destroying  a  private  industry 
eliminate  an  important  factor  in  national  defense. 

The  question  whether  private  manufacturers  will 
sell  at  a  reasonable  price  has  been  answered  by  the 
Bethlehem  Steel  Company,  which  offers  for  an 
indefinite  period  to  make  armor  on  terms  to  be  fixed 
by  the  Government. 

Certainly  nothing  could  be  more  reasonable 
than  this  proposal. 


This  proposition  meets  the  Government  not  only  half 
way,  but  all  the  way, 

—Dubuque  Telegraph-Herald,  May  31,  1916 


20 


What  People  Are  Thinking--Editorial  Comment 

Kansas 

Smith  County  Pioneer,  May  25,  1916 
GOT  ITS  DANDER  UP 


The  Bethlehem  Steel  Company  has  got  its  dander 
up. 

They  say  they  are  dealing  squarely  with  the 
American  Government,  and  are  buying  space  in  this 
paper  to  prove  it. 

They  say  the  mistake  of  the  Bethlehem  Steel 
Company  has  been  that  it  has  kept  quiet. 

Big  business  men  don't  find  time  to  "pop  off"  all 
the  while  and  get  their  names  in  the  papers,  and  they 
get  roundly  abused. 

But  the  Bethlehem  will  stand  for  it  no  longer. 

Henceforth  they  wiU  have  something  to  say  for 
themselves,  and  are  paying  the  newspapers  for 
advertising  space  to  say  it,  which  is  somewhat 
different  from  the  reformers  who  want  the  space  for 
nothing. 


21 


What  People  Are  Thinking— Editorial  Comment 

Maine 

Portland  Express  and  Advertiser,  April  3, 1916 

FEDERAL  MUNITIONS  PLANT 

.  .  .  The  insincerity  of  those  who  insist  on  the 
establishment  of  a  Government  plant  is  shown  by 
their  unwillingness  to  provide  for  the  system  of 
strict  cost-accounting  which  was  urged  by  Senator 
Weeks  and  other  Republicans. 

Lewiston  Journal,  March  24,  1916 

...  As  long  as  private  plants  are  disposed 
to  be  fair  they  should  not  be  crowded  from 
the  field. 

When  competition  is  once  shut  out  there  is 
danger  of  deterioration  of  the  material,  as 
many  inventors  would  quit  the  field. 

Even  Germany,  whose  efficiency  has  been  the 
wonder  and  admiration  of  the  world,  does  not  tie 
the  making  of  armor  plate  down  to  Government 
workshops.  Let  us  kill  the  monopoly  features  of 
the  business  and  at  that  point  stop  Government 
expansion  of  the  industry. 

Too  much  Government  ownership  might  cause 
another  boom  in  the  line  of  Congressional  pork. 

Besides,  it  is  by  no  means  certain  that  any  great 
naval  expansion  will  be  needed.  The  horrors  of 
the  present  war  may  be  the  means  of  all  nations 
finding  some  other  method  of  settling  disputes.  ... 


...  As  long  as  private  plants 
are  disposed  to  be  fair  they  should 
not  be  crowded  from  the  field. 


— Lewiston  Journal,  March  S4,  1916 


22 


What  People  Are  Thinking — Editorial  Comment 

Massachusetts 


COMING  TO  TERMS 

.  .  .  There  is  wide  public  feeling  that  a  Government-owned  plant  might 
prove  a  costly  and  unsatisfactory  experiment. 

It  may  be  sound  policy  for  the  Government  to  accept  the  steel  men's  offer 
and  for  the  present,  at  least,  hold  in  abeyance  the  proposal  for  a  Govern- 
ment plant. 

—Brockton  Times,  May  29,  1916 


Boston  Journal,  March  27,  1916 

ABOUT  ARMOR  PLATE 

.  .  .  The  steel  people  have  done  no  "knocking." 

Theirs  is  only  a  protest  against  the  general 
principle  of  Government  ownership  of  any  estab- 
lished and  efficient  industry. 

There  have  been  no  figures  to  show  that  the  Govern- 
ment could  make  armor  either  better  or  cheaper 
than  the  private  plants. 

The  Tillman  bill's  support  comes  largely  from 
poUticians  who  seek  to  strengthen  themselves  by 
old-fashioned  methods  of  opposing  all  big  business 
enterprises.  .  . 

Boston  Journal,  April  13,  1916 

ABOUT  PORK  FACTORIES 

.  .  .  The  Tillman  armor  plate  bill,  which  has 
passed  the  Senate  and  is  making  friends  in  the 
House,  estabHshes  an  $11,000,000  plant  for  Govern- 
ment manufacture  of  armor. 

That  would  be  a  first  step  toward  political 
seizure  of  the  whole  or  a  large  part  of  the  munitions 
trade. 

The  poUtical  jealousies  bred  in  an  $11,000,000 
plant  where  fat  jobs  were  being  handed  out 
like  campaign  cigars,  would  make  further  manu- 
facturing a  strong  political  object. 

A  score  or  so  of  factories,  located  in  populous 
voting  districts,  would  be  a  fairly  handy  asset  to 
the  party  in  power. 


Boston  Journal,  June  26,  1916 

A  WHOLESOME  SIGN 

In  seeking  to  prevent  an  appropriation  for  a 
Government  armor  plant  the  Bethlehem  Steel 
Company  has  been  frank  in  stating  selfish  reasons. 

The  company,  which  has  an  investment  of 
$7,000,000  in  its  armor  plant,  is  wilUng  to  sacrifice 
its  usual  armor  profits  in  order  to  safeguard  the 
$7,000,000,  and  agrees  to  furnish  armor  at  a  price 
covering  fixed  charges,  the  Federal  Trade  Com- 
mission to  determine  those  charges.  "Bribing  the 
Government,"  the  enemies  of  big  business  have 
charged  in  denouncing  the  steel  company's  proposal. 

But  more  liberal  minds  have  stopped  to  inves- 
tigate, and  they  make  no  such  charge. 

The  company  is  striving  simply  to  save  investors 
the  loss  of  $7,000,000,  which  would  be  wiped  out 
by  a  Government  monopoly  of  the  armor  industry. 

It  has  made  good  plate,  at  prices  lower  than  those 
obtained  by  any  other  Government  on  earth. 

Its  greatest  offense,  as  cited  by  its  enemies,  is 
that  it  has  sold  plates  abroad  cheaper  than  at  home; 
and  that  offense,  we  now  find,  was  committed  only 
in  the  sale  of  sample  lots. 

The  profit  may  have  been  too  high — the  company 
probably  charged  all  it  dared,  as  most  American 
business  enterprises  do.  But  that  seems  a  poor 
reason  for  putting  a  great  industry  out  of  business.  . 

.  .  .  The  company  m£untains  no  lobby  at  Wash- 
ington. 

In  its  publicity  matter  it  appeals  only  to  the 
public,  inviting  public  opinion  to  prevent  what 
it  considers  an  injustice. 


23 


What  People  Are  Thinking— Editorial  Comment 


Massachusetts^ 


Continued 


This  practice  of  inviting  public  opinion  is  new — 
too  new,  perhaps,  to  have  its  effect  in  this  instance. 

The  railroads  and  the  great  manufacturing 
interests  formerly  did  their  offensive  and  defensive 
work  through  agents  in  Washington.  Now  they 
appeal  to  the  public. 

The  pubhc,  unused  to  making  decisions,  doesn't 
quite  understand  the  new  responsibility  yet. 

In  the  past  the  public  hasn't  been  accustomed 
to  hear  much  about  business  laws  until  those 
laws  were  on  the  statute  books.  .  . 


The  Boston  Commercial,  April  1,  1916 

THAT  ARMOR  PLATE  PLANT 

.  .  .  The  voters  will  do  well  to  bear  in  mind  the 
fact  that  Government-owned  enterprises  do  not  pay 
taxes,  while  those  under  private  ownership  do. 
Every  industry  taken  over  by  the  Government 
saddles  just  so  much  more  taxation,  and  its  own 
yearly  deficit  in  addition,  on  taxpayers  in  general. 

It  should  also  be  borne  in  mind  that  unprofitable 
enterprises  are  a  menace  to  the  future  welfare  of  the 
country  and  its  people.  Profits  create  the  fund  that 
pays  for  industrial  expansion  and  progress  and  upon 
these  the  prosperity  of  all  depends. 

The  Rethlehem  Steel  Company  offered  to  show  its 
books  and  then  take  contracts  for  armor  plate  at 
prices  which  the  Government,  after  obtaining  full 
information  as  to  costs,  might  determine  to  be  fair. 
It  was  a  generous  offer,  for  there  is  no  good  reason 
why  a  corporation  which  happens  to  be  equipped  to 
supply  something  the  Government  purchases  should 
do  the  work  at  cost,  while  the  other  corporations  and 
individuals  who  pay  no  greater  taxes  proportionately 
are  using  their  facihties  profitably  serving  the  general 
trade. 

This  armor  plate  plant  scheme,  however,  is  in 
keeping  with  the  idea  which  a  number  of  politicians 
have  been  trying  for  several  years  past  to  popularize, 
namely,  that  the  Government  is  entirely  independent 
of  the  tax-paying  public,  that  it  has  the  unquestioned 
right  to  single  out  prosperous  corporations  and 
individuals  and  punish  them  whenever  the  party  in 
control  at  Washington  thinks  it  can  best  serve  its 
poUtical  ends  by  resorting  to  such  a  course. 


Haverhill  Gazette,  May  4,  1916 

MUNITION  SUPREMACY 

.  .  .  The  real  significance  of  Mr.  Schwab's  state- 
ment, however,  Hes  in  the  sense  of  security  it  conveys 
to  the  American  public  at  this  time. 

While  the  people  as  a  whole  may  not  be  directly 
interested  in  the  marvelous  production  of  the  Beth- 
lehem works,  or  in  the  details  of  shares  and  divi- 
dends, it  is  gratifying  to  know  that  in  any  great 
international  crisis  that  might  force  the  United 
States  into  war,  we  will  find  our  munition  plants 
equipped  and  ready  to  meet  the  emergency. 

Despite  our  natural  abhorrence  of  war  and  the 
universal  American  sentiment  against  it,  should  we 
be  called  upon  to  defend  our  national  honor,  our 
greatest  need  will  be  the  very  products  that  the 
Bethlehem  Company  and  other  great  munition 
plants  stand  ready  to  furnish  in  such  abundance. 

This  seems  to  be  one  phase  of  preparedness  that 
has  developed  automatically,  and  in  a  possible 
crisis  it  may  spell  American  supremacy. 


The  Govern- 
ment armor  plant 
scheme  is  a  piece 
of  folly. 


-New  Bedford  Standard 
April  12, 1916 


24 


What  People  Are  Thinking — Editorial  Comment 


Massachusetts- 


Continued 


Brockton  Times,  June  27,  1916 
ECONOMY 

If  public  funds  are  not  to  be  wasted  at  a  time  when 
more  money  than  is  now  available  is  needed  for 
defense,  the  United  States  Senate  would  do  well 
seriously  to  consider  the  latest  offer  of  the  Bethlehem 
Steel  Company. 

The  House  Naval  Appropriation  Bill,  upon  which 
the  Senate  is  expected  to  take  final  action  this  week, 
provides  for  the  construction  of  a  Government  armor 
plant  at  a  cost  of  $11,000,000. 

As  prices  of  labor  and  material  have  shown  a 
striking  advance  since  the  estimate  was  made,  it  is 
believed  the  cost  would  be  $15,000,000.  Two  years 
would  be  required  to  complete  the  plant  and  put  it  in 
operation. 

The  Bethlehem  Steel  Company,  which  declares  it 
would  lose  much  of  its  $7,000,000  investment  in 
armor-making  machinery  if  the  Government  plant  is 
bmlt,  now  offers  to  supply  armor  plate  at  cost  of 
operation,  to  be  determined  by  officers  of  the  Gov- 
ernment, plus  such  charges  for  overhead,  interest  and 
depreciation  as  may  be  determined  by  the  Federal 
Trade  Commission. 

In  view  of  the  notorious  high  cost  and  comparative 
inefficiency  of  Government  operated  business  enter- 
prises, is  it  reasonable  to  assume  that  Uncle  Sam  will 
be  wise  in  rejecting  this  proposal  of  the  steel  company 
just  for  "spite,"  because  he  thinks  he  has  been  over- 
charged for  armor  plate  in  the  past? 

What  business  man  would  do  it? 


FaU  River  Globe,  June  1,  1916 

THE  ARMOR  PLATE  PLANT  MATTER 

.  .  .  Furthermore,  the  Bethlehem  people  renew 
their  offer  to  continue  producing  the  best  quality 
of  armor  plate  made  in  the  world  under  Government 
supervision  at  any  price  the  Government  itself 
shall  name  as  fair. 

That  is  a  proposition  that  is  entitled  to  the  serious 
consideration  of  Congress,  and  whatever  may  have 
been  the  practices  and  poUcy  of  the  armor  plant 
trust  in  the  past  in  its  dealings  with  the  Government, 
it  is  obvious  that  it  is  now  disposed  to  play  fair. 


Apart  from  any  question  as  to  the 
entire  accuracy  or  pertinence  of  its 
argument,  the  Bethlehem  Company  is 
probably  correct  in  its  statement  that 
it  can  make  armor  cheaper  than  it  could 
be  made  in  any  Government  plant. 

— Holyoke  Transcript 
May  25, 1916 


Holyoke  Transcript,  May  25,  1916 

AN  ILLUMINATING  PUBLICITY 
CAMPAIGN 

The  Bethlehem  Steel  Company  is  the  first  big 
plsoit  of  the  kind  to  turn  to  "pitiless  publicity"  by 
way  of  advertising  to  explain  its  position. 

Charlie  Schwab  is  a  man  of  most  fertile  resources 
and  it  is  he  who  has  turned  to  the  poHcy  of  publicity 
to  meet  the  Naval  Committee's  armor-plate  plant 
provision. 

The  bulletins  and  printed  exposes  of  the  Beth- 
lehem Company  are  admirably  edited  and  state  the 
case  from  their  point  of  view  with  cogent  argument. 

Apart  from  any  question  as  to  the  entire  accuracy 
or  pertinence  of  its  argument,  the  Bethlehem  Com- 
pany is  probably  correct  in  its  statement  that  it  can 
make  armor  cheaper  than  it  could  be  made  in  any 
Government  plant. 

And  it  might  go  further  in  maintaining  that  it  is  a 
more  than  doubtful  poHcy  for  the  United  States  to 
take  any  step  calculated  to  put  the  existing  private 
armor  plsmts  out  of  operation. 

As  the  proposed  Government  plant  will  not  have 
the  capacity  to  supply  all  the  armor  the  nation  will 
need,  the  immediate  danger  of  such  an  outcome  is  not 
especially  serious,  but  if  it  be  the  fact,  as  alleged  by 
the  Bethlehem  Steel  Company,  that  it  is  prepared  to 
"manufacture  armor  at  any  price  which  the  Govern- 
ment itself  shall  name  as  fair,"  then  it  does  seem 
foolish  to  spend  $11,000,000  to  accomplish  that 
which  can  be  effected  without  the  expenditure  of  a 
doUar.  .  .  . 


25 


What  People  Are  Thinking — Editorial  Comment 


Massachusetts- 


Continued 


Lowell  Courier-Citizen,  April  7,  1916 

NOT  BUILT  YET 

That  Government  armor  plate  plant  to  cost 
$11,000,000  isn't  built  yet  or  even  started.  There  is 
plenty  of  time  to  abandon  the  foolish  policy  of 
engaging  in  such  work. 

It  is  sound  business  sense  to  secure  from  private 
concerns  everything  needed  in  war. 

There  are  few  plants  capable  of  making  the  plate 
required  for  our  warships.  The  Government  cannot 
take  their  places  though  it  can  easily  drive  them  out 
of  the  industry. 

Bethlehem  Steel  Company,  one  of  the  compeuiies 
equipped  to  furnish  plate,  has  amplified  its  offer  to 
the  nation.  It  will  reduce  the  price  from  $425  to 
$395  a  ton,  which  is  from  $10  to  $100  less  than  other 
powers  are  paying,  and  agree  to  maintain  that  figure 
for  at  least  five  years. 

Further,  it  offers  to  make  armor  for  an  indefinite 
period  at  any  price  which  the  Federal  Trade  Com- 
mission may  name  as  fair. 

Mr.  Schwab's  offer  is  really  that  of  a  patriot — and 
not  one  for  revenue  only. 


Lowell  Courier-Citizen,  April  12,  1916 

ARMOR  PLATE 

There  is  no  reason  why  we  should  pay  an  exorbi- 
tant rate  for  armor  plate  in  the  future,  nor  why  we 
should  have  in  the  past. 

But  if  the  steel  companies  will  now  agree  to  manu- 
facture it  at  what  the  Government  itself  decides  to 
be  a  fair  profit  that  is  the  best  arrangement  possible. 

Certainly  the  opportunity  to  avail  ourselves  of  the 
plants  now  ready  for  business  on  our  own  terms 
ought  to  be  accepted,  and  if  we  are  cheated  under 
this  arrangement  we  can  blame  no  one  but  our- 
selves.— Worcester  Gazette. 


Lowell  Courier-Citizen,  May  27,  1916 
SHOULD  NOT  INVEST 

Mr.  Schwab's  Bethlehem  Steel  Company  is  keep- 
ing up  its  fight  against  a  Government  armor  plant. 
The  public  in  general  has  no  particular  love  for  the 


steel  concern  but  a  large  part  of  it  no  doubt  hopes  the 
company  will  win. 

The  Government  should  not  invest  $11,000,000 
or  any  other  amount  in  a  plant,  because  by  so  doing 
it  is  apt  to  drive  private  works  out  of  the  business. 
Mr.  Schwab  renews  his  offer  to  furnish  plate  at  any 
price  the  Government  itself  may  fix  as  fair,  and  if 
there  is  no  string  to  the  offer  it  should  be  accepted. 

New  Bedford  Mercury,  May  1,  1916 
THE  BETTER  POLICY 

...  It  would  seem  the  better  policy  to  accept  the 
latest  terms  of  the  armor  plate  men  and  see  what 
would  come  of  them. 

If  finally  proved  unsatisfactory  then  we  might 
embark  on  a  Government-owned  armor  plate  plant, 
something  to  be  held  aloof  from  as  long  as  possible. 

"Acceptance  of  it  will  save  the  Government 
money,"  says  the  Company  of  its  offer. 

There  seems  little  reason  to  doubt  it. 

Springfield  Republican,  May  29,  1916 

LOOKS  TEMPTING 

The  Bethlehem  Steel  Company's  offer  to  make 
armor  plate  for  the  Government  indefinitely  at  a 
price  which  the  Government  itself  shall  fix,  looks 
tempting,  but  it  would  be  more  tempting  still  if  the 
offer  were  made  for  a  period  not  less  than  99  years. 

The  "indefinite  period"  the  company  stipulates 
is  so  very  indefinite  that  the  company  might  end 
it  within  six  months  after  Congress  had  adjourned. 

Make  the  offer  for  99  years,  Mr.  Schwab,  or 
even  25  years. 

Springfield  Morning  Union,  May  29,  1916 
OF  DOUBTFUL  EXPEDIENCY 

...  If  the  steel  companies  were  trying  to  impose 
on  the  Government  there  might  be  good  reason 
for  resorting  to  Government  manufacture  of  armor 
plate,  but  Mr.  Schwab's  offer,  apparently  made 
in  good  faith,  seems  to  dispose  of  that  excuse  for 
embarking  in  an  enterprise  of  such  doubtful  ex- 
pediency. 


26 


What  People  Are  Thinking — Editorial  Commeiit 


Michigan 


Detroit  Free  Press,  April  7,  1916 


INVESTIGATE  THIS,  TOO 

.  .  .  Charles  M.  Schwab,  president  of  the  Bethle- 
hem Steel  Company,  has  now  made  another  state- 
ment which  is  equally  deserving  of  consideration 
before  action  is  taken.  In  an  address  to  the  share- 
holders last  Tuesday,  he  said  among  other  things : 

"It  is  acknowledged  that  the  United  States  is 
today  getting  the  best  quality  of  armor  in  the  world. 
It  is  getting  that  quahty  at  a  price  below  that 
paid  for  armor  by  any  other  great  naval  power. 
The  United  States,  according  to  official  reports, 
has  paid  a  lower  price  for  armor  over  a  period  of 
twenty  yeeu-s  than  any  of  the  other  countries  with 
large  navies." 

Is  Mr.  Schwab  right?  Is  it  a  fact  that  the 
United  States  has  been  getting  the  best  armor 
in  the  world  at  a  lower  price  than  any  other 
country  with  a  large  navy  pays?  If  so,  where  is 
the  need  for  a  Government  plant?  Why  should 
$11,000,000  of  the  people's  money  be  spent 
without  adequate  cause? 

Charles  M.  Schwab  is  a  recognized  authority  on 
steel  production.  He  occupies  a  responsible  posi- 
tion in  the  commercial  world.  It  is  presumable 
that  when  he  makes  a  statement  publicly  about 
his  own  business  he  knows  what  he  is  talking  about 
and  is  telhng  the  truth.  Until  what  he  has  said 
and  his  company  has  said  on  this  subject  is  refuted 
the  proposal  to  build  a  Government  plant  will 
stand  unjustified.  The  country  has  plenty  of  other 
uses  for  its  money  than  to  be  spending  it  on  a  project 
that  is  under  suspicion. 


Detroit  Free  Press,  June  3,  1916 

PREPAREDNESS  PROSTITUTED 

.  .  .  The  national  legislature  has  taken  the 
responsibility  for  legislating  out  of  business 
several  well  established  and  reliable  private 
factories  in  favor  of  a  Gk)vernment  plant  which 
cannot  be  put  in  operation  for  a  long  time, 
and  which  when  established  will  in  all  proba- 
bility operate  at  a  cost  that  will  mean  higher 
prices  than  ever  in  armor  plant. 


Battle  Creek  Enquirer,  May  23,  1916 

TALKING  TO  THE  PEOPLE 

The  Bethlehem  Steel  Company,  which  presents 
its  argument  in  the  Government  armor  plate  case 
direct  to  the  people  through  the  medium  of  general 
publicity,  gets  credit  at  least  for  a  sincere  beUef 
that  it  has  a  story  that  will  bear  hearing  and  con- 
sidering, and  for  its  belief  in  the  willingness  of  the 
public  to  hear  and  consider  fairly. 

It  prefaces  its  remarks  by  the  frank  statement 
that  the  company  has  made  a  misteike  in  policy 
by  keeping  still  while  others  have  been  doing  the 
adverse  talking,  and  that  it  now  intends  to  go  to 
public  opinion  with  all  its  facts. 

The  procedure  is  vastly  interesting  as  indicating 
a  new  departure  in  the  handling  of  large  corporation 
affairs,  and  a  new  attitude  toward  the  public  mind. 

Whatever  may  be  the  merits  of  the  armor  plate 
affair,  as  finally  developed  by  what  the  pubhc  thinks 
of  what  the  Bethlehem  Steel  Company  has  to  say, 
it  is  at  least  reassuring  to  know  that  big  interests 
are  willing  to  submit  their  case  to  the  people  and 


Is  Mr.  Schwab  right?  Is  it  a  fact  that  the  United  States  has  been  getting 
the  best  armor  in  the  world  at  a  lower  price  than  any  other  country  with  a 
large  navy  pays? 

If  so,  where  is  the  need  for  a  Government  plant?  Why  should  $11,000,000 

of  the  people's  money  be  spent  without  adequate  cause? 

—Detroit  Free  Press,  April  7, 1916 


27 


What  People  Are  Thinking — Editorial  Comment 


Michigan^ 


that  the  people  are  presumed  to  be  willing  to  Usten 
impartially,  and  judge  soundly. 

If  the  practice  can  be  carried  out  to  a  successful 
operation  in  all  its  possibilities,  much  of  the 
manipulation  of  affairs  for  political  effect  may  be 
removed  from  local  and  general  Government. 


Calumet  News,  June  10,  1916 

A  FAIR  PROPOSITION 

The  advertisements  of  the  Bethlehem  Steel  Com- 
pany which  are  appearing  in  newspapers  throughout 
the  United  States  present  a  most  unusual  offer 
from  that  corporation  and  seem  written  in  a  spirit 
of  absolute  fairness. 

The  offer  of  the  Bethlehem  Company  is  that 
it  will  agree  to  manufacture  armor  plate  for  the 
Government  under  any  terms  which  the  Federal 
Trade  Commission  shall  fix.  In  other  words  it 
offers  to  sell  at  the  Government's  price. 

Could  there  be  a  more  fair  and  equitable 
proposition? 

What  will  the  United  States  accomplish  by 
ignoring  it  and  proceeding  with  its  announced 
intention  of  manufacturing  its  own  armor 
plate?  .  .  . 

Muskegon  Chronicle,  April  11,  1916 

LET  US  BE  REASONABLE 

...  So  far  as  we  are  concerned,  the  Bethlehem 
Steel  Company  might  lose  its  $7,000,000  plant  and 
be  hanged,  if  it  deserves  to  lose  it. 


Continued 


But  the  company,  which  is  waging  a  war  of  pub- 
licity— ^a  reversal  of  the  usual  order — against  the 
proposed  Government  move,  has  brought  forward 
some  statements  that  are  at  least  deserving  of  full 
and  fair  consideration. 

...  If  the  Bethlehem  Company  is  willing  to 
manufacture  armor  for  the  Government  on  the  Gov- 
ernment's own  terms,  what  is  to  be  gained  by  spend- 
ing money  on  a  venture  into  Government  manufac- 
ture, the  success  of  which  is  only  to  be  conjectured? 

As  a  refuge  from  extortion.  Government  competi- 
tion is  perfectly  justifiable.  But  Government  com- 
petition is  not  a  healthy  thing. 

It  is  diverting  the  functions  of  Government  into 
channels  not  intended  for  it,  and  the  steel  com- 
panies, whatever  they  may  have  been  in  the  past, 
certainly  have  brought  forward  a  proposition  that 
the  Government  can  illy  afford  to  ignore. 


Port  Huron  Times-Herald,  May  28,  1916 

THE  NEW  IDEA 

.  .  .  When  the  Bethlehem  Steel  Company  is 
straightforward  enough  and  enterprising  enough 
to  buy  thousands  of  dollars'  worth  of  newspaper 
space  to  advise  the  pubhc  of  its  attitude  toward 
the  Government,  and  to  reveal  the  inside  facts  with 
regard  to  its  business,  it  is  assuredly  well  worth 
the  time  of  the  newspaper  reader  to  take  advantage 
of  the  pubhcity  offered  and  to  foUow  these  state- 
ments as  they  appear  in  the  columns  of  The  Times- 
Herald  and  other  newspapers  of  the  country.  .  . 


A  FAIR  PROPOSITION 

.  .  .  To  expend  $11,000,000  for  a  Government  armor  plant  at  this  time 
when  the  National  Treasury  is  depleted  will  mean  that  other  important  and 
needed  preparedness  measures  will  suflFer,  and  there  is  nothing  to  be  gained 
if  we  can  procure  armor  plate  at  our  own  price  from  private  concerns. 

— Grand  Rapids  Herald,  June  9, 1916 


28 


What  People  Are  Thinking — Editorial  Comment 

Minnesota 


Minneapolis  Tribune,  May  25,  1916 

CORRECTING  SEVERAL  "MISTAKES" 

.  .  .  The  Bethlehem  Steel  Company  is  probably 
not  so  much  interested  in  the  expenditure  of  the 
people's  money  for  an  armor  plant  as  it  is  in  avoiding 
such  destructive  competition. 

It  is,  however,  not  without  justification  for  its 
protest  and  seems  to  have  made  a  proposition 
which  ought  to  induce  the  Government  to  consider 
very  carefully  the  business  sense  of  Government 
manufacture  of  armor  at  such  an  enormous  original 
outlay. 

And  undoubtedly  there  is  also  something  to  be 
said  on  the  side  of  encouraging  private  manufacture 
of  munitions  of  all  kinds  in  order  that  the  capacity 
of  production  may  be  maintained  at  as  large  a  figure 
as  possible  against  a  sudden  extraordinary  demand. 

The  important  fact,  however,  seems  to  be 
that  the  mere  threat  to  go  into  Gk>vernment 
manufacture  has  done  all  that  the  actual 
erection  of  a  plant  could  accomplish.  That 
justifies  the  threat,  but  it  questions  the  wisdom 
of  going  any  further  at  the  present  time. 


Minneapolis  Tribune,  July  2,  1916 

A  GOVERNMENT  ARMOR  PLANT 

The  great  blot  upon  the  Naval  Bill  is  the  provision 
for  the  construction  of  a  Government  armor  plate 
plant  to  cost  $11,000,000.  The  armor  plant  question 
ought  not  to  be  confused  with  the  question  of  the 
increase  of  our  naval  strength. 

If  the  Senate  and  House  are  in  favor  of  a  Govern- 
ment armor  plant,  let  them  say  so  in  a  separate  bill 
so  that  the  President  can  veto  it. — The  Outlook. 


The  important  fact,  however,  seems  to  be  that  the  mere 
threat  to  go  into  Government  manufacture  has  done  all  that 
the  actual  erection  of  a  plant  could  accomplish. 

That  justifies  the  threat,  but  it  questions  the  wisdom  of 
going  any  further  at  the  present  time. 

—Minneapolis  Tribune,  May  25, 1916 


29 


What  People  Are  Thinking — Editorial  Comment 

Missouri 


St.  Louis  Times,  April  19,  1916 


Kansas  City  Star,  May  29,  1916 


BEGUN  BACKWARDS 

.  .  .  Instead  of  a  few  politicians  drumming  up 
votes  by  a  chatter  of  armies  and  Government  armor 
plants,  let's  have  a  few  real  ships  at  sea,  behind 
which  we  can  take  a  stand  and  tell  the  rest  of  the 
world  where  to  "head  in." 

An  army  of  10,000,000  men  couldn't  protect  the 
Government  armor  plant  if  a  gigantic  navy  saw  fit 
to  blow  our  ships  to  smithereens,  in  order  to  invade 
our  coast. 

The  navy's  the  thing. 

The  sooner  Congress  learns  this  fact,  the  better  it 
will  be  for  the  nation  at  large. 


BETHLEHEM'S  PUBLICITY  POLICY 

Attention  is  called  to  the  second  advertisement 
of  the  Bethlehem  Steel  Company,  appearing  in  The 
Star,  as  an  example  of  the  policy  of  frank  publicity 
in  contrast  to  that  of  secrecy  that  so  often  charac- 
terizes the  plans  of  big  corporations. 

The  Bethlehem  Company  has  7  million  dollars 
invested  in  an  armor  plant. 

It  is  proposed  in  Congress  that  the  Government 
build  an  armor  plant  of  its  own. 

Naturally  this  proposal  is  being  fought  by  the 
company. 

So  it  is  going  before  the  country  with  a  series 
of  advertisements,  explaining  frankly  that  its 
purpose  is  to  save  its  7  milhon  dollar  investment, 
and  telling  what  terms  it  is  wiUing  to  make  in  order 
to  keep  its  plant  in  operation. 

The  procedure  is  open  and  above  board. 

Whatever  may  be  thought  of  its  argument,  at 
least  there  can  be  no  question  that  it  is  adopt- 
ing an  intelligent  and  fair  method  of  presenting 
its  case  to  the  people. 

The  public  appreciates  jthat  sort  of 'an  attitude 
on  the  part  of  a  big  business  institution. 


Whatever  may  be  thought  of  its  argument,  at  least 
there  can  be  no  question  that  it  is  adopting  an  intelligent 
and  fair  method  of  presenting  its  case  to  the  people. 

The  public  appreciates  that  sort  of  an  attitude  on 
the  part  of  a  big  business  institution. 

—Kansas  City  Star,  May  S9,  1916 


30 


What  People  Are  Thinking — Editorial  Comment 

Nebraska 


The  Beatrice  Daily  Sun,  April  14,  1916 

ARMOR  PLATE 

.  .  .  The  arguments  wee  no  doubt  entitled  to  more 
consideration  than  they  will  get.  The  chief  reason 
for  the  Government  investing  eleven  million  dollars 
in  a  plant  to  manufacture  armor  plate  is  to  protect 
the  Government  against  being  imposed  upon.  Here 
is  one  of  the  big  steel  companies  of  the  country 
offering  to  permit  its  prices  to  be  fixed  by  the 
Government.  Aside  from  the  price  and  quality,  it 
is  not  likely  that  anything  would  be  gained  by  a 
Government  plant. 

Government  ownership  would  be  costly 
and  inefficient,  if  we  may  judge  by  what  we 
see  of  it. 

It  should  be  carefully  considered  if  better  results 
cannot  be  obtained  by  some  such  plan  of  co-operation 
as  is  proposed.  In  time  of  war  the  Government  can 
requisition  factories  of  any  kind,  and  it  is  possible  at 
any  time  to  make  provision  for  a  plan  by  which  all 
such  utilities  should  be  conscripted  in  time  of  danger 
or  at  any  time. 


Government  ownership  would 
be  costly  and  inefficient,  if  we 
may  judge  by  what  we  see  of  it. 


■The  Beatrice  Daily  Sun,  April  H,  1916 


31 


What  People  Are  Thinking — Editorial  Comment 

New  Hampshire 


Manchester  Union,  May  26,  1916 

AN  ARMOR  PROPOSITION 

.  .  .  Granted  that  these  arguments  are  ex-parte 
m  the  nature  of  things.  Granted  that  the  steel 
companies  have  more  at  stake  than  any  other  ele- 
ment m  the  threatened  federal  inveision  of  their 
industrial  sphere. 

They  make  no  attempt  to  deny  or  beUttle  this 
consideration. 

Even  making  its  offer  to  supply  armor  at  the 
Government's  own  price  is  admittedly  sound  busi- 
ness poUcy  for  the  Company.    What  of  it? 

If,  as  the  Company  avers,  the  acceptance  of  the 
offer  would  avoid  a  waste  of  at  least  $11,000,000  of 
pubUc  money,  besides  preserving  a  private  industry 
unimpaired,  the  thing  is  certainly  worthy  of  serious 
consideration. 

If  developments  should  bring  to  Ught  anything 
cryptic  in  the  Company's  offer,  the  Government  at 
any  time  could  revive  the  federal  armor  plant  plan 
and  put  it  uito  operation  at  will. 

Meanwhile,  the  Government  might  do  a  great  deal 
worse  than  consider  the  Bethlehem  Steel  Company's 
offer. 


32 


What  People  Are  Thinking-Editorial  Comment 


New  Jersey 


Newark  News,  June  1,  1916 


SOME  ELEMENTARY  ECONOMIES 

.  .  .  The  Bethlehem  Company  is  willing,  under 
a  sweeping  pledge  many  times  repeated,  to  submit 
its  prices  to  official  regulation  by  the  Federal  Trade 
Commission. 

The  object  of  the  pending  appropriation — ^if  that 
be  price  regulation — can  be  attained  without  em- 
barking upon  Government  manufacture  and  without 
confiscation  of  private  property. 

To  the  argument  from  ethics  and  economics  there 
is  thus  added  the  argument  from  expediency  against 
this  legislation. 

The  Senate  has  voted  for  an  $11,000,000  appro- 
priation, and  the  House  yesterday  tacked  an  amend- 
ment to  the  nav£j  supply  bill  for  the  same  purpose. 

Unless  the  House  amendment  is  reconsidered  the 
appropriation  will  pass,  and  the  fact  that  the 
President,  if  opposed  to  a  Government  plant,  would 
be  compelled  to  veto  the  entire  naval  supply  bill, 
makes  a  veto  unlikely. 

This  needless  and  dubious  experiment  is 
therefore  ticklishly  near. 


Camden  Post-Telegraph,  May  27,  1916 

VALUABLE  FACILITIES 

.  .  .  The  Bethlehem  Steel  Works  may  give  to 
the  United  States  Government  the  same  valuable 
service  which  the  Krupp  Works  give  to  the  German 
Imperial  Government,  but  a  purblind  "pork"- 
loving  Congress  threatens  the  destruction  of  all 
private  armor  plants. 


Montclair  Montclairian,  May  3,  1916 

IS  ARMOR  PRICE  TOO  HIGH? 

.  .  .  This  would  seem  to  dispose  of  the  second 
question  and  to  lead  to  the  conclusion  that — 

Fair  treatment  of  the  private  interests  producing 
armor  plate  would  result  in  a  saving  to  the  Govern- 
ment over  any  cost  it  could  produce  by  its  own 
manufacture. 


Newark  News,  July  5,  1916 

STRIKES  THE  RIGHT  KEY 

But  perhaps  the  greatest  single  good  omen  is 
the  attitude  of  the  Bethlehem  Steel  Company, 
which  has  broadened  its  original  offer  and  declares 
itself  ready  to  make  anything  it  can  manufacture, 
and  not  only  armor  plate,  at  the  Government's 
own  price,  should  war  come.  That  spirit  strikes 
the  true  key.  It  is  a  spirit  of  national  service,  a 
readiness  to  do  the  nation's  work  for  a  reasonable 
compensation. 


^This  needless  and  dubious  experiment." 


Newark  News,  June  1, 1916 


33 


What  People  Are  Thinking — Editorial  Comment 

New  Mexico 


Albuquerque,  July  9,  1916 

NO  LOBBY  TO  URGE  ITS  VIEWS 

Recently  the  Bethlehem  Steel  Company  has  been 
issuing  some  marvelously  powerful  publicity  matter, 
stating  its  opposition  to  Government-owned  armor 
plants  and  its  proposition  to  the  United  States 
Government.  On  the  cover  of  the  latest  of  these  it 
states: 

"The  Bethlehem  Steel  Company  maintains  no 
lobby  to  urge  its  views  at  Washington.  It  is  relying 
on  publicity  to  get  its  position  before  Congress  and 
the  people." 

If  the  interests  directing  Bethlehem  Steel  had  been 
as  firm  believers  in  the  power  of  frank  and  full  pub- 
licity during  the  past  twenty  years  as  they  are 
to-day  they  probably  would  need  to  maintain  neither 
a  lobby  at  Washington  nor  a  publicity  stafT  and  a 
printing  plant  to  protect  their  interests  now. 


34 


i 


What  People  Are  Thinking — Editorial  Comment 

New  York 


.  .  .  Surely  no  more  liberal  and 

equitable  contract 

than  that  ofFered 

by 

the  Bethlehem  Steel 

Company  could  be  drafted. 

■New  York  Sun,  April  3, 

1916 

New  York  Evening  Post,  March  22,  1916 

AFRAID  OF  THE  FACTS? 

.  .  .  The  great  reason  urged  in  favor  of  a  Govern- 
ment plant  is  that  the  private  concerns  get  extor- 
tionate prices  for  the  armor ;  are  the  advocates  of  the 
scheme  afraid  that  the  facts  may  show  that  the 
Government  gains  nothing  by  having  its  own 
plant? 

If  they  think  the  showing  would  be  favorable,  why 
do  they  not  welcome  a  chance  for  a  convincing 
demonstration  of  the  soundness  of  the  new  move? 

Mere  aggregate  statements  of  current  expenditure 
and  current  output,  without  analysis  showing  over- 
head charges,  depreciation,  etc.,  will  be  far  from 
sufficient  to  determine  the  matter. 


Journal  of  Commerce,  March  23,  1916 

THE  ARMOR  PLATE  FACTORY 

.  .  .  The  Government  being  the  only  customer 
for  this  particular  product,  the  act  is  expected  to 
put  an  end  to  contracts  with  private  manufacturers 
for  supplying  it. 

That  wiU  cause  a  heavy  loss  to  two  or  three 
establishments  which  have  invested  large  sums  in 
equipment  for  making  the  plate  required. 

The  Bethlehem  Steel  Company  alone  has 
$7,000,000  in  armor  plate  plant  which  it  was  induced 
by  the  Government  to  construct  in  order  to  provide 
the  material  for  the  navy  in  competition  with  two 
other  concerns.  These  private  works  may  not  be 
rendered  entirely  worthless,  but  the  Government 
can  hardly  purchase  them  for  its  own  use,  and  they 
will  have  to  be  converted  to  other  purposes. 

There  is  not  the  least  probability  that  armor 
plate  will  be  made  by  the  Government  at  less 
cost  than  it  could  be  obtained  for  by  contract 


with  private  steel  works,  but  it  may  thereby  be 
made  of  some  political  use. 

That  seems  to  be  considered  more  important  than 
economy. 

New  York  Herald,  March  24,  1916 

A  GOVERNMENT  ARMOR  PLANT 

.  .  .  The  erection  of  a  national  factory  is  an  ex- 
periment of  the  most  difficult  character. 

Its  production  possibly  for  years  may  be  open 
to  doubts,  and  because  of  its  specially  hmited  extent 
in  the  matter  of  supply  and  demand  its  success 
must  destroy  what  private  enterprise  has  created. 

New  York  Sun,  April  3,  1916 

THE  BETHLEHEM  STEEL  COMPANY 
TO  THE  UNITED  STATES 
GOVERNMENT 

.  .  .  Surely  no  more  liberal  and  equitable 
contract  than  that  offered  by  the  Bethlehem 
Steel  Company  could  be  drafted. 

It  would  put  the  price  of  armor  absolutely  within 
the  control  of  the  Government  itself;  the  customer 
through  an  agency  of  its  own  creation,  would  fix 
the  sum  to  be  paid;  and  the  maker  bids  itself  to 
accept  that  price  "for  an  indefinite  period." 

In  the  presence  of  this  proposal,  what  serious 
argument  can  be  advanced  in  behalf  of  the  great 
Josephus's  socialistic  scheme? 


35 


What  People  Are  Thinking — Editorial  Comment 


New  York 


.—Continued 


New  York  Times,  April  5,  1916 

GOVERNMENT  OWNERSHIP 

.  .  .  Take  the  case  of  the  armor-plant  proposal. 

Would  the  Government  merely  set  up  the  armor- 
plate  plant? 

In  that  case  the  Government  would  lose  many 
benefits  available  to  iron  and  steel  plants  which 
produce  the  armor  from  the  ground  to  the  ship's 
side. 

Not  only  would  the  Government  miss  many  econ- 
omies, and  thereby  produce  dear  armor.  The  result 
of  the  partial  production  would  be  that  the  Govern- 
ment would  still  be  paying  many  of  the  hateful 
private  profits. 

Where  would  the  Government  stop? 

Would  it  buy  iron  mines  and  ore  freighters? 

Or  would  it  make  armor  at  a  loss,  charge  the 
difference  to  the  taxpayers,  and  cripple  the  armor 
plants  to  boot? 


Wall  Street  Journal,  April  5,  1916 

GOVERNMENT  ARMOR  PLATE 

The  proposition  now  is  to  put  $11,000,000,  the 
price  of  a  dreadnaught,  into  a  plant  to  manufacture 
armor,  when  not  even  the  plea  of  economy  can  be 
summoned  to  justify  the  experiment. 

If  the  (jk>verniaent  cannot  build  a  vessel  on 
even  terms  with  a  private  concern,  can  it  erect 
a  great  plant  and,  under  a  politically  appointed 


organization  caring  nothing  for  expense,  manu- 
facture a  ton  of  armor  plate  as  cheaply  or 
as  well  as  those  whose  business  it  is  to  manu- 
facture armor? 

A  steel  company  must  meet  competition  and  yet 
show  a  favorable  balance  sheet. 

The  Government  has  no  competitors  and  pays 
no  dividends.  When  there  is  a  deficiency  the  income 
tax  is  increased  to  make  it  up. 

The  question  for  a  taxpayer  to  ask  himself  is, 
whether  under  the  guise  of  national  defense,  he  is 
to  be  further  taxed  to  help  pay  dividends  on  an 
unlimited  amount  of  political  capital. 

Wall  Street  Joiu-nal,  April  17, 1916 

A  LOBBY  AND  A  LESSON 

Whatever  may  be  the  merits  of  the  Government 
armor  plate  question,  the  pubhcity  campaign  of  the 
Bethlehem  Steel  Corporation  must  provoke  admira- 
tion. 

It  could  not  be  altogether  "disinterested,"  but 
neither  has  it  pretended  to  be.  It  has  not  found  it 
necessary  to  resort  to  oratory.  It  has  answered 
rhetoric  with  fact;  it  has  answered  fiction  with  fact; 
it  has  answered  calumny  with  fact.  Its  appeals  have 
aimed  not  so  much  at  eUciting  pity  for  its  own 
pUght  as  at  showing  what  the  passage  of  the  Govern- 
ment armor  plate  measure  would  meeui  to  the  gen- 
eral public,  to  the  taxpayer,  and  to  the  cause  of 
national  defense..   .  . 


No  question -begging  epithet,  not  even  "  Wall  Street,"  has  more  odium 

attached  to  it  in  the  public  mind  than  the  word  '4obby."    It  is  to  the  credit 

of  Mr.  Schwab  and  Mr.  Grace  that  they  have  succeeded  in  wiping  out  part  of 

this  reproach.    Their  lobby  has  been  open.    It  has  been  frank.     It  has  sought 

to   influence   Congressmen   through   their   reason,   and    not   through    their 

pocketbooks  (possibly  this  acounts  for  its  seeming  ineflfectiveness.) 

— Wall  Street  Journal 
April  17, 1916 


36 


I 


What  People  Are  Thinking — Editorial  Comment 


New  York 


.— Oontinued 


.  • .  There  can  be  no  doubt  that  had  the  terms  suggested 
by  Mr.  Schwab  been  advanced  a  year  ago  they  would  have 
been  gladly  accepted.  .  . 


—New  York  World,  April  7, 1916 


[That  being  the  case,  is  there  any  reason  why  our 
offer  should  not  now  be  accepted,  rather  than  plunge 
ahead  with  a  wasteful  expenditure  of  $11,000,000? 
Bethlehem  Steel  Company.] 


New  York  Evening  Sun,  April  15,  1916 

PUTTING  THE  NAVY  IN  BUSINESS 

...  If  the  Government  is  its  own  armor  maker, 
a  keen  official  incentive  to  detect  imperfections  in 
the  product  will  no  longer  exist,  just  as  it  no  longer 
exists  in  respect  to  Government-built  ordnance  and 
ships. 

The  best  energies  of  the  navy  personnel  will  go 
into  manufacturing,  at  the  expense  of  preparation 
for  what  the  navy  alone  can  do. 

Finally,  the  private  manufacturers,  instead  of 
being  taught  in  time  of  peace  how  to  second  in 
the  shops  the  work  of  the  ships  on  the  sea,  will  be 
taught  nothuig  save  the  advantage  of  letting  the 
navy  care  for  itself. 

On  all  these  three  accounts  a  navy  armor  plant 
will  lower  naval  efficiency. 


Albany  Evening  Journal,  April  18,  1916 
WHY  EXPERIMENT  NOW? 

.  .  .  Why  spend  $11,000,000  on  an  experiment 
when  the  Government  has  such  an  offer? 

Give  us  a  fighting  navy  now  and  let  the  question 
of  armor-plate  manufacture  go  over  until  we  shall 
have  ships  and  equipment  sufficient  to  feel  that  we 
are  well  protected  from  any  possible  foreign  inva- 
sion.— From  Buffalo  Express. 

Albany  Knickerbocker  Press,  June  3,  1916 
GOVERNMENT  CONFISCATION 

.  .  .  Seriously,  this  armor  plate  plant  proposition 
is  bad  from  every  standpoint. 

The  three  steel  companies  which  have  armor 
plate  plants  have  invested  in  them  $20,000,000  at  the 
soUcitation  of  the  Government.  Their  profit  has 
been  only  a  fraction  more  than  one  per  cent.  In 
ordinary  steel  making  profits  exceed  ten  per  cent. 

The  companies  are  now  receiving  for  their  product 
$425  a  ton,  which  is  less  than  any  other  country  in 
the  world  is  paying.  Japan,  which  owns  its  plant 
and  employs  the  cheapest  of  all  labor,  has  a  cost  of 
$490  a  ton.    England  pays  $503  and  France  $460. 

The  Bethlehem  Steel  Company  has  offered  to 
guarantee  to  furnish  armor  plate  to  the  Government 
for  an  indefinite  period  at  $395,  or  at  any  other  price 
to  be  fixed  as  fair  by  the  Federal  Trade  Conmiission 
appointed  by  President  Wilson, 

The  offer  to  reduce  the  price  is  not  made  because 
the  present  price  is  too  high,  but  because  a  $7,000,000 
plant,  employing  3,000  men,  wiU  be  rendered  useless 
and  valueless  if  the  Grovemment  plant  is  built. 

Any  return,  however  small,  would  be  better  than 
the  loss  of  the  whole  investment. 


37 


What  People  Are  Thinking— Editorial  Comment 


New  York 


-Continued 


But  in  the  face  of  all  the  facts — and  in  the  face  of 
the  further  certainty  that  the  $11,000,000  men- 
tioned as  a  starter  will  not  even  build  the  plants 
proposed,  to  say  nothing  of  providing  the  coke 
fields,  the  furnaces,  the  ore  beds  and  the  speciaUsts 
and  experts  without  which  they  will  be  useless — the 
Democrats  are  going  ahead. 

This  is  harvest  time  for  them.  They  are  taking  no 
chances  of  wishing  later  that  they  had  been  more 
bold. 

BuflFalo  Express,  March  22,  1916 

BUY  THE  ARMOR  PLATES 

.  .  .  The  only  problem  which  would  confront  the 
Government  in  dealing  with  the  Bethlehem  Company 
and  the  others,  for  they  probably  will  follow  the 
Bethlehem's  example,  would  be  in  making  a  hard- 
and-fast  agreement  for  a  long  term  of  years  and  in 
seeing  that  all  the  parts  of  the  agreement  are  faith- 
fully carried  out. 

But  it  should  be  comparatively  easy  for  the 
Government  to  protect  itself  in  this  matter. 
It  certainly  is  worth  while  to  try  to  save  the 
millions  which  would  be  used  in  the  experiment 
that  is  proposed  under  the  Tillman  bill. 

Buffalo  News,  May  27,  1916 

DOWN  TO  TRUTH  AND  FAIRNESS 

With  preparedness  the  foremost  consideration 
of  the  present  Congress,  the  matter  of  a  Govern- 
ment armor  plate  factory  has  brought  many  inter- 
ests into  conflict. 

The  campaign  of  the  Bethlehem  Steel  Company 
against  a  Government  controlled  armor-making 
institution  was  to  be  expected. 

Up  until  now  their  arguments  have  only  elicited 
smiles    and    facetious    comment.    Of   course,    the 


Bethlehem  Steel  Company  is  against  the  Govern- 
ment manufacture  of  armor  plate;  it  takes  their 
share  of  the  vast  profits.  This  has  been  the  de- 
duction. 

Apparently  the  weakness  of  their  own  case  has 
spurred  the  Bethlehem  Steel  Company  to  the 
business  of  truth,  absolute  and  untrimmed. 

It  has  stirred  them  to  an  honest,  frank 
explanation  of  their  opposition  to  the  Govern- 
ment institution.  .  . 

Kingston  Leader,  July  6,  1916 

AN  INTERESTING  SITUATION 

The  proposition  that  the  United  States  Govern- 
ment should  enter  into  the  business  of  manufacturing 
armor  plate  for  its  battleships,  etc.,  by  investing 
$11,000,000  in  its  own  plants,  is  now  being  consid- 
ered by  the  House  of  Representatives.  As  a  matter  of 
fact  an  appropriation  carrying  this  amount  has 
passed  the  House. 

This  policy  on  the  part  of  the  Committee  on  Naval 
Affairs,  carried  to  its  conclusion,  would  mean  that 
the  plants  now  in  existence  and  operated  by  private 
capital  would  be  closed  perhaps,  and  the  physical 
property  made  valueless. 

The  Bethlehem  Steel  Company,  the  corporation 
that  would  be  most  vitally  affected,  has  been  taking 
the  people  of  the  United  States  into  its  confidence, 
through  the  medium  of  newspaper  space,  and  wants 
its  side  of  the  situation  known. 

We  have  read  some  of  the  statements  made  by  and 
on  behalf  of  this  company  and  have  read  some  of  the 
testimony  adduced  before  the  Committee  on  Naval 
Affairs  and  cannot  but  feel  that,  on  the  face  of  the 
testimony  that  has  been  made  pubhc  and  on  the 
strength  of  the  exhibits  made,  the  Committee  on 
Naval  Affairs  and  the  Congress  itself  would  do  pretty 
well  to  allow  this  matter  to  rest  as  it  is,  or  at  least  to 


.  .  .  The  armor-plate  plant  proposition  in  the  naval  bill  looks  like  Govern- 
ment ownership  gone  mad. 

— TVoy  Times 
June  3, 1916 


38 


What  People  Are  Thinking— Editorial  Comment 


New  York- 


Continued 


listen  to  the  very  fair  propositions  made  by  the 
officials  of  the  Bethlehem  Company. 

What  the  Government  would  gain  or  where  the 
Government  would  profit  by  investing  a  great  sum  of 
money  for  plants  to  duphcate  those  aheady  standing 
and  equipped  and  organized,  when  so  fair  an  offer  as 
has  been  made  by  President  Grace  of  the  Bethlehem 
Company  is  at  hand,  we  cannot  see. 

It  is  a  situation  that  should  be  watched  in  its 
developments  until  a  final  decision  has  been  made. 

The  situation  would  seem  to  merit  more  of  news- 
paper comment  than  it  has  been  receiving. 


Rochester  Post  Express,  May  26,  1916 

DISCUSSION  IN  THE  OPEN 

Writers  in  the  press  who  make  capital  of  attacking 
"big  business"  condemn  the  Bethlehem  Steel 
Company's  campaign  against  the  naval  bill's 
armor-plant  provision  on  the  ground  that  it  is  an 
attempt  to  play  poUtics  by  appeahng  to  the  public. 

Without  discussion  here  of  the  merits  of  the 
Bethlehem  Company's  propaganda,  the  method 
which  has  been  taken  is  obviously  right  and  is 
exactly  in  accord  with  the  poUcy  which  critics  of 
business  are  always  clamoring  for. 

Here  is  a  great  corporation  frankly  discussing  its 
business  in  the  open. 

When  corporations  are  silent  with  regard  to  their 
affairs,    they    are    condemned    for    stsu"    chamber 


methods  of  procedure;  when  they  publish  the  facts 
of  their  business  to  the  pubHc,  they  are  condemned 
for  trying  to  confuse  the  pubHc  mind. 
There  is  no  justice  or  sense  in  this  sort  of  carping. 

Rochester  Post  Express,  June  24,  1916 

A  WASTE  OF  PUBLIC  FUNDS 

.  .  .  The  Bethlehem  Company  offers  to  manu- 
facture armor  plate  for  the  United  States  at  the 
cost  of  operation,  plus  such  charges  for  overhead 
expenses,  interest  and  depreciation  as  the  Federal 
Trade  Commission  may  determine  to  be  fair. 

Does  any  sane  person  entertain  the  slightest 
doubt  as  to  what  the  Senate  should  do  with  the 
$11,000,000  armor  plant  item  in  the  naval  appro- 
priation bill? 


Utica  Observer,  April  20,  1916 

HOLD  IT  A  WHILE 

It  might  be  just  as  well  for  Congress  to  keep  that 
armor  plate  bill  in  abeyance  for  a  time. 

The  private  plants  will  make  favorable  agree- 
ments with  the  Government,  and  they  are  equipped 
and  ready. 

We  need  all  our  activity  and  all  our  money  in 
pushing  forward  other  necessary  enterprises. 


SOME  GOOD  IN  THEM 

The  Bethlehem  Steel  Company,  one  of  the  corporations  denounced  by 
Senator  Tillman  as  a  rapacious,  unscrupulous  trust  that  should  be  punished 
by  being  deprived  of  contracts  for  armor  plate,  has  retorted  by  placing  its 
factories  and  all  its  resources  at  the  service  of  the  Government  in  case  of  war. 
A  serious  conflict  might  serve  one  good  purpose  if  it  proved  to  demagogic, 
narrow-minded  members  of  Congress  that  even  successful  Americans  have 

some  good  in  them. 

— Rochester  Democrat-Chronicle,  July  2, 1916 


39 


What  People  Are  Thinking — Editorial  Comment 


New  York 


.—Continued 


With  these  facts  in  mind,  the  Company 
asks  whether  it  is  fair  for  the  Crovemment 
to  destroy  this  private  industry.  There 
can,  of  course,  be  but  one  answer.  .  . 

.  .  .  Can  the  United  States  afford  to 
adopt  a  policy  that  would  have  brought 
disaster  to  England?  The  question  answers 

**^®^-  —Rochester  Post 

April  10,  1916 


Elmira  Advertiser,  April  13,  1916 

A  LESSON  IN  PATRIOTISM 

Even  if  no  question  of  sound  business  policy  were 
involved  in  the  proposal  to  establish  a  Government 
plant  for  the  manufacture  of  armor  plate,  the 
Bethlehem  Steel  Company  would  appear  to  better 
advantage  than  the  Secretary  of  the  Navy  in  dis- 
cussion of  the  administration's  plan. 

There  is  a  lesson  in  patriotism  in  the  corporation's 
latest  offer  to  the  Government,  but  nothing  of  the 
sort  is  to  be  found  in  Mr.  Daniels'  attempt  to  ruin 
a  private  industry  and  at  the  same  time  wiaste 
eleven  million  dollars  of  public  funds  in  making 
valueless  existing  and  adequate  facilities.  .  .  . 

.  .  .  Their  attitude  is  fine  and  patriotic,  and  the 
Company,  by  making  an  offer  that  contains  no  stipu- 
lation as  to  profit,  has  left  the  administration  with- 
out a  single  argument  for  the  establishment  of  a 
Government  plant. — ^Rochester  Post-Express. 

Poughkeepsie  Star,  July  6,  1916 

A  QUESTION  OF  HONESTY 

An  amendment  to  the  navy  appropriation  bill, 
offered  yesterday  by  Senator  Liver,  would  make 
the  proposed  $11,000,000  appropriation  for  a  Gov- 
erment  armor  plate  plant  available  only  in  case 
private  manufacturers  refused  to  give  the  Federal 
Trade  Conunission  full  opportunity  to  investigate 
the  cost  of  producing  armor,  or  to  enter  into  con- 
tracts with  the  Navy  Department  at  prices  deter- 
mined upon  by  the  commission  as  reasonable. 


In  other  words  if  armor  plate  men  will  be  honest 
the  Government  will  do  business  with  them;  other- 
wise not.  But  why  assume  that  pohticians,  con- 
tractors and  others  who  will  spend  the  $11,000,000 
will  be  more  honest  than  the  armor  plate  men? 

Rochester  Democrat  and  Chronicle 

March  29, 1916 

AMERICAN  MUNITIONS 
MANUFACTURE 

Sydney  Brooks,  an  EngHshman,  recently  wrote 
in  the  New  York  Times  a  friendly  warning  to 
Americans  regarding  the  manufacture  of  war  sup- 
pUes. 

He  views  with  disfavor  the  bill  before  Congress 
proposing  to  appropriate  $11,000,000  for  a  Federal 
armor  plant,  and  says  that  he  feels  anxious  for  us 
when  he  finds  "Congressmen  talking  as  though  it 
were  the  one  object  of  their  existence  to  prevent 
anyone  from  making  a  profit  out  of  anything, 
inveighing  especially  against  the  memufacturers  of 
munitions."  Mr.  Brooks  feels  grateful  toward 
American  war  material  makers  for  their  energetic 
efforts  to  supply  the  Allies,  and  says: 

"But  if  I  were  an  American  I  should  feel  equally 
grateful.  I  should  realize  that  these  colossal  fac- 
tories, while  working  for  the  AUies  to-day,  are 
working  also  for  the  America  of  to-morrow. 

"I  should  be  proud  of  the  extraordinary  skill  and 
enterprise  and  far-seeing  Hberahty  with  which  they 
have  been  planned  and  conducted.  I  should  recog- 
nize iu  them  so  many  pillars  of  national  safety,  so 
many  pohcies  of  insurance  against  the  awful  risks  of 
being  caught  unprepared. 

"And  I  should  certfiinly  do  what  I  could  to  defeat 
any  policy  that  threatened  to  destroy,  to  starve,  or 
to  weaken  enterprises  on  whose  instant  efficiency 
might  one  day  depend  all  the  difference  between 
victory  and  defeat." 

.  .  .  There  is  no  doubt  that  Mr,  Brooks  is  right 
when  he  says: 

"Remember  that  you  can  raise  volunteers,  drill 
them  and  train  them  infinitely  quicker  than  you  can 
arm  them,  and  that  this  business  of  turning  out 
munitions  of  war  is  one  that  cannot  be  improvised." 


40 


What  People  Are  Thinking — Editorial  Comment 


New  York^ 


Continued 


Rochester  Democrat  and  Chronicle,  June  29, 1916 

BUSINESS  METHODS  OUT  OF  PLACE 

The  Government,  Congress  evidently  believes, 
engages  in  private  business  for  the  purpose  of  utiliz- 
ing an  easy  method  for  squandering  its  excessive 
wealth.  This  attitude  explains  why  Congress  has 
refused  to  pay  any  heed  to  the  offer  of  the  Bethlehem 
Steel  Company  to  manufacture  eo^mor  plate  at  cost 
for  an  indefinite  period  of  time,  and  with  Govern- 
ment experts  to  supervise  its  books.  Economy  was 
the  pretext  for  putting  the  Government  in  the 
armor-plate  business,  but  economy  was  the  last 
thing  the  statesmen  had  in  mind. 


Rochester  Post-Express,  April  10,  1916 

THE  ARMOR  PLATE  QUESTION 

In  a  statement  addressed  to  members  of  Congress 
the  Bethlehem  Steel  Company  says  the  three 
armor  plate  plants  in  this  country  were  established 
to  serve  the  United  States  Government  and  for 
that  purpose  alone. 

This  is  not  disputed  by  anyone  famiUar  with  the 
facts.  Reporting  to  Congress  in  December,  1896, 
H.  A.  Herbert,  then  Secretary  of  the  Navy,  said  the 
armor  contractors  had  invested  large  sums  of  money 
in  their  plants,  and  that  they  entered  the  business 
at  the  request  of  the  navy  department. 

Nor  is  it  denied  that  for  twenty  years  this  country 
has  obtained  a  higher  grade  of  armor  and  paid  less 
for  it  than   any  other  great  naval  power.    The 


facilities  of  the  Bethlehem  pleuit  are  at  the  disposal 
of  the  Government  upon  its  own  terms. 

With  these  facts  in  mind,  the  company  asks 
whether  it  is  fair  for  the  Government  to  destroy 
this  private  industry.  There  can,  of  course,  be 
but  one  answer.  .  . 

,  .  .  Can  the  United  States  afford  to  adopt 
a  policy  that  would  have  brought  disaster  to 
England? 

The  question  answers  itself;  but  an  incompetent 
Secretary  of  the  Navy,  not  yet  rebuked  by  his  chief, 
insists  upon  forcing  out  of  business  the  private 
firms  that  are  furnishing  armor  plate  at  prices 
considerably  lower  than  Great  Britain  is  content 
to  pay. 

It  is  an  amazing  situation. 


Troy  Times,  March  28,  1916 

THE  GOVERNMENT-OWNERSHIP 
CRAZE 

...  It  was  shown  by  military  and  naval  experts 
of  the  highest  standing  who  testified  in  various 
committee  heetrings  at  Washington  that  privately 
owned  municipal  works  were  valuable  assets  to  the 
nation,  and  that  if  private  armor-plate  mills  could 
furnish  plate  at  a  fair  profit  no  advantage  could 
accrue  from  the  Government  going  into  business. 

That  appears  to  be  the  counsel  of  common  sense 
and  of  technical  experience. 

The  Democrats  at  Washington  would  do  well  to 
heed  the  voice  of  wisdom  and  prudence. 


41 


What  People  Are  Thinking— Editorial  Commeilt 

Ohio 


Cincinnati  Times  Star,  March  24,  1916 

BEGINNING  EARLY 

Already  our  congressmen  are  fashioning  a  pork 
barrel  made  of  armor  plate. 

,  It  is  said  that  an  effort  will  be  made  by  Southern 
congressmen  to  have  the  proposed  Government 
armor  plate  plant  built  in  the  Birmingham  region, 
and  that  this  location  will  be  opposed  by  Western 
congressmen. 

Where  the  Western  congressmen  would  locate  the 
plant  is  not  stated. 

In  other  words,  the  Government  plant  will  not  be 
located  at  a  point  which  business  principles  would 
dictate. 

And  if  the  location  is  to  be  a  matter  of 
"politics,"  that  symbol  of  inefficiency,  what 
assurance  have  the  American  people  that  the 
armor  plate  will  not  be  tainted  by  the  same 
vicious  system? 


Columbus  Dispatch,  April  4,  1916 

A  BETHLEHEM  STEEL  STATEMENT 

The  Bethlehem  Steel  Company  has  issued  a  cir- 
cular in  which  it  says,  apropos  of  the  bill  to  provide 
a  Government  armor  plate  plant: 

1.  That  it  urges  no  plan  of  preparedness. 

2.  That,  if  the  United  States  should  become 
involved  in  war,  it  would  sell  to  the  Government  any 
of  its  products  at  any  price  the  Government  might 
choose  to  pay,  and  work  24  hours  a  day  to  supply  it. 

3.  That  armor  plate  is  the  least  profitable  article 
it  manufactures,  though  it  has  $7,100,000  invested 
in  that  plant. 


4.  The  profits  of  the  Company  in  1915  were  not 
from  armor  plate. 

5.  It  will  make  armor  plate  for  the  Government, 
for  five  years,  at  a  price  $30  per  ton  less  than  the 
rate  in  the  present  contracts;  or  will  furnish  it,  for 
an  indefinite  period,  at  any  price  named  by  the 
Federal  Trade  Commission  as  fair. 

If  this  is  true,  the  Company  has  at  a  considerable 
business  sacrifice  established  the  armor  plate  plant 
and  would  patriotically  and  without  regard  to  profit 
serve  the  Government  in  an  emergency.  There  is  in 
the  statement  a  fine  spirit  which  everybody  wiU  ap- 
preciate, and  it  will  be  regretted  that  any  other  was 
ever  shown.  .  .  . 


Dayton  Herald,  April  7,  1916 

THE  BETHLEHEM  STEEL  COMPANY 

TO  THE  UNITED  STATES 

GOVERNMENT 

.  .  .  The  only  excuse  for  putting  $11,000,000  in  a 
Government-owned  armor  factory  is  found  in  the 
allegation  that  the  private  manufacturers  have 
charged  an  excessive  price  for  their  product. 

The  determination  of  a  fair  price  is  admittedly 
difficult;  the  Bethlehem  Company  declares  that  the 
$425  a  ton  paid  by  the  United  States  is  less  than  the 
price  paid  by  any  great  naval  power,  and  oflfers  to 
reduce  this  by  $30. 

Moreover,  the  Company  agrees  to  make  armor  for 
an  indefinite  period  at  any  price  the  Federal  Trade 
Commission  declares  as  fair. 

Under  all  these  circumstances,  what  reason  can  be 
put  forward  at  this  time  for  the  expenditure  of  the 
taxpayers'  money  contemplated  by  the  bill  now 
before  the  Representatives  in  Congress?  .  .  . 


The  Bethlehem  proposition  affords  the  country  all  the 
protection  it  can  require  and  more  than  it  will  have  if  it  assumes 
the  hazards  of  establishing  and  conducting  a  great  business. 


Hamilton  Republican-News,  June  30,  1916 


42 


What  People  Are  Thinking— Editorial  Comment 


Ohio 


— <]!ontinued 


Hamilton  Republican-News,  June  30,  1916 

THE  BETHLEHEM  COMPANY'S 
PROPOSITION 

The  Bethlehem  Steel  Company  is  vigorously 
fighting  the  bill  to  establish  a  Government  armor 
plate  factory ;  and  it  is  using  methods  that  indicate 
that  there  is  a  higher  standard  in  business  and 
pohtics  than  existed  a  few  years  ago. 

Instead  of  sending  a  lobby,  with  big  money  and 
live  tips  on  the  stock  market,  to  work  at  Washington 
the  Bethlehem  Company  has  adopted  a  campaign  of 
open  letters.  It  has  flatly  made  the  Government  this 
proposition: 

The  Bethlehem  Steel  Company  will  agree,  for  such 
period  as  the  Government  may  designate  as  fully 
protecting  the  public  interest,  to  manufacture  armor 
plate  for  the  Government  of  the  United  States  at 
actual  cost  of  operation  plus  such  charges  for  over- 
head expenses,  interest  and  depreciation  as  the 
Federal  Trade  Commission  may  determine  to  be 
fair. 

It  seems  to  us  that  in  view  of  such  a  proposition  it 
is  unwise  and  unnecessary  to  build  a  Government 
plant.  By  encouraging  the  Bethlehem  Company 
and  other  private  enterprises,  the  country  will  always 
have  them  at  its  service  if  a  crisis  develops,  and  the 
industrieJ  nation  will  be  vastly  improved. 

On  the  other  hand  if  the  Government  goes  into  the 
armor  plate  business  itself  it  will  have  to  meet  all 
national  requirements,  as  not  a  dollar  of  private 
capital  will  ever  go  into  such  an  enterprise. 

The  Bethlehem  proposition  affords  the  country  aU 
the  protection  it  can  require  and  more  than  it  will 
have  if  it  assumes  the  hazards  of  establishing  and 
conducting  a  great  business. 

And  it  will  encourage  and  not  destroy  private 
enterprise  which  may  become  essential  to  the  national 
safety. 


Steubenville  Herald-Star,  July  5,  1916 

AN  ECONOMICAL  PROPOSITION 

The  Bethlehem  Steel  Company  has  made  a  public 
proposition  to  the  Government  to  make  armor  plate 
at  actual  cost  of  production  plus  a  reasonable  per- 
centage for  overhead  charges  to  be  fixed  by  an 
impartial  commission. 

As  an  economical  proposition  this  would  seem  to 
discount  a  Government  armor  plant. 


East  Liverpool  Review,  March  24,  1916 

SPEECH  WITH  THE  TRUE  RING 

.  .  .  The  following  is  a  portion  of  Senator  Hard- 
ing's address  and  ought  to  be  approvingly  acclaimed : 

"I  realize,"  said  the  Senator,  "that  it  is  not  popu- 
lar to  defend  the  armor  plate  manufacturers,  but  I 
believe  it  to  be  little  less  than  the  height  of  folly  to 
abandon  the  policy  of  encouraging  private  enter- 
prises at  this  time. 

"This  is  a  very  poor  time  to  risk  the  development 
of  Government  armor  plate  making  when  we  mean 
to  expend  hundreds  of  millions  on  super-dread- 
naughts  and  want  them  not  only  to  be  the  best  but 
want  them  without  delay. 

"I  think  the  sober  thought  of  the  country  favors 
giving  big  business  a  square  deal. 

"It  was  once  popular  to  'bait'  big  business,  with- 
out an  inquiry  as  to  the  conscience  which  must  run 
true  in  every  permanently  successful  enterprise,  but 
the  reflective  judgment  to-day  favors  giving  business 
its  fair  chance." 


43 


What  People  Are  Thinking — Editorial  Comment 


Oregon 


Portland  Oregonian,  May  26,  1916 


.  .  .  Mr.  Daniels  may  think  Bethlehem  is  bluffing. 
He  can  easily  find  out.    Let  him  call  its  bluff. 

Before  investing  $11,000,000  of  the  people's 
money  on  a  plant  which  may  prove  useless,  let  him 
give  Bethlehem  a  trial. 

In  these  days  of  deficits  and  emergency  taxes 
the  American  people  have  not  $11,000,000  to 
squander  on  what  may  prove,  in  Mark  Twain's 
words,  "a  darned  experiment." 


. . .  Mr.  Daniels  may  think  Bethlehem 
is  bluffing.  He  can  easily  find  out. 
Let  him  call  its  bluff. 


— Portland  Oregonian,  May  26, 1916 


44 


What  People  Are  Thinking — Editorial  Comment 


Pennsylvania 


Philadelphia  Record,  April  2,  1916 

GOVERNMENTAL  MUNITIONS  PLANTS 

.  .  .  This  Government  could  not  set  up  and  main- 
tain munitions  plants  in  time  of  peace  that  would 
even  distantly  approximate  the  capacity  required  to 
supply  it  in  time  of  war. 

In  the  latter  eventuality  the  Government  would 
have  to  commandeer  and  mobilize  the  industries  of 
the  country;  and  this  would  include  the  fixing  of 
reasonable  prices. 

If  the  national  safety  requires  the  exercise  of  dic- 
tatorial powers,  it  is  within  the  authority  of  this  or 
any  other  nation  to  exercise  such  powers. 

Anyhow,  the  Government  pleuits  with  outputs 
limited  to  peace  requirements  could  not  regulate 
prices  by  their  puny  competition. 

Philadelphia  Record,  April  6,  1916 

A  GOVERNMENT  ARMOR  PLANT 

.  .  .  The  capacity  of  the  proposed  Government 
plant  is  to  be  20,000  tons  per  annum. 

This  is  more  than  the  total  requirements  of  the 
navy  have  been  for  any  past  year,  and  the  con- 
sequence would  be  to  render  the  privately-owned 
plants  practically  valueless.  If  it  were  contem- 
plated to  enlarge  the  naval  program  of  the  nation 
so  as  to  double  the  annual  requirements  for  armor 
plate,  the  erection  of  a  Government  plant  in  addition 
to  the  existing  private  plants  would  have  some 
reasonableness. 

But  to  destroy  the  latter  by  way  of  penalty 
for  an  offense  not  proven  against  them  would 
be  senseless. 

And  it  might  deprive  the  nation  of  facilities 
which,  some  day,  it  may  sorely  need. 

Philadelphia  Public  Ledger,  April  14,  1916 

URGE   "FIGHTING  NAVY,  NOT 
'MANUFACTURING'" 

.  .  .  "The  need  for  a  Government  armor  plant, 
if  any  exists,  obviously  does  not  spring  from  a  lack 
of  facilities  for  the  making  of  armor  in  this  country. 
Plants  now  in  existence  are  ample  to  take  care  of  a 
building  program  for  the  navy  double  that  of  the 
past." 


Philadelphia  Inquirer,  April  17,  1916 

PASSION  FOR  GOVERNMENT 
OWNERSHIP 

.  .  .  Another  and  not  less  impressive  instance  of 
the  same  Socialistic  tendency  must  be  recognized 
in  the  adoption  by  Congress  of  a  plan  for  the  erection 
of  an  armor  plate  plant  by  the  Federal  Government 
at  an  estimated  cost  of  another  eleven  miUion 
dollars. 

It  is  one  of  the  least  of  the  objections  to  this  pro- 
cedure that  it  would  destroy  the  utility  of  private 
plants  erected  at  the  Government's  own  instance 
at  a  cost  of  many  millions  of  dollars,  and  in  view 
of  the  proposition  which  the  owners  of  those  plants 
have  made,  it  is  quite  indefensible,  but  the  Demo- 
cracy is  obsessed  by  a  passion  for  Government 
ownership  and  the  Socialistic  ideal  is  apparently 
the  one  that  it  is  striving  to  realize. 

Aheady  it  is  squinting  at  the  raihoads  and  there  is 
no  telling  to  what  lengths  it  will  go  unless  an  aroused 
and  enlightened  pubhc  opinion  calls  a  halt. 

Philadelphia  Record,  May  26,  1916 

REPRESSING   PRIVATE   ENTERPRISE 
...  Is    it    worth    while    to    drive    private 

enterprise  out  of  business  and   convert    the 

United  States  Government  into  a  huge  trade- 

ing  corporation? 

Philadelphia  Press,  May  31,  1916 

THE  NEW  POLICY  OF  BETHLEHEM 

STEEL 
.  .  .  Formerly   when   corporations   were   vitally 
interested  in  legislation  they  did  their  business  more 
or  less  secretly. 


But  to  destroy  by 

way 

of  penalty  for 

an  offense  not  proven 

against  them  would 

be  senseless. 

And   it   might   deprive 

the   nation   of 

facilities  which,  some 

day, 

it  may  sorely 

need. 

Philadelphia  Record 

April  6, 1916 

45 


What  People  Are  Thinking— Editorial  Comment 


Pennsylvania- 


Now  the  Bethlehem  Steel  is  frankly  opposing  the 
$11,000,000  armor  plate  plant  bill,  which  has  already 
passed  the  Senate,  on  the  ground  that  it  will  not  only 
injure  its  business,  which  it  established  for  the  bene- 
fit of  the  Government,  but  the  Government  will  gain 
nothing  by  this  expenditure.  .  .  . 

.  .  .  Entirely  apart  from  the  statements  which 
lead  to  the  offer  to  permit  the  Federal  Trade  Com- 
mission to  set  the  price,  it  would  seem  that  no 
fairer  proposal  than  this  could  be  made. 

The  plan  for  the  Government  armor  plant  was 
sponsored  by  those  who  made  chtu-ges  of  gouging 
and  vast  profits. 

As  the  Compsiny  is  wilUng  to  let  the  fate  of  its 
plant  rest  in  the  hands  of  a  Governmental  body,  the 
excuse  for  passing  this  bill  falls. 

No  final  action  should  be  taken  by  Congress 
which  does  not  include  the  consideration  of  the  new 
attitude  of  the  Bethlehem  Steel. 

Philadelphia  Public  Ledger,  May  23,  1916 

NEW  POLICY  OF  PUBLICITY 

The  Bethlehem  Steel  Company  may  be  too  late 
in  its  adoption  of  the  policy  of  publicity,  but  it  is 
right,  nevertheless,  and  the  "Big  Business"  of 
which  it  is  an  important  representative  would  do 
well  to  follow  its  example. 

Mr.  Schwab's  company  is  conducting  the  fight 
against  the  armor-plate  plant  provision  of  the 
naval  bill  with  much  ability,  and  by  making  its 
arguments  in  the  open  and  by  appealing  to  the 
judgment  of  public  opinion,  it  forestalls  any  possible 
criticism  as  to  "lobbying"  methods. 

Contrary  to  a  widespread  impression,  even 
"Big  Business"  is  entitled  to  a  hearing  on 
legislation  affecting  its  affairs.  .  .  . 


Continued 


Philadelphia  Inquirer,  May  27,  1916 

NO  NECESSITY  FOB  AN  ABMOB 
PLANT 

.  .  .  The  proposed  Federal  plant  no  longer  has 
a  leg  to  stand  on. 

Far  better  put  the  $11,000,000  into  much  needed 
ships  than  waste  them  in  experiments. 

Philadelphia  Public  Ledger,  June  2,  1916 
POLITICS  IN  ABMOB  PLATE 

Why  should  the  taxpayer  be  saddled  with  another 
useless  form  of  extravagance  in  the  shape  of  a 
poUtically  built  and  politically  managed  factory 
to  make  armor  for  ships? 

The  Government  can  do  nothing  else  cheaper 
than  it  can  be  done  by  individuals  or  corporations. 
Why  pretend  that  it  can  manufacture  armor  more 
cheaply? 

There  are  only  three  plants  in  America  which  do 
make  armor,  and  all  of  them  are  in  Pennsylvania. 
They  represent  an  investment  of  not  less  than 
$20,000,000,  which  was  put  there  in  good  faith. 

They  are  now  willing  to  sell  armor  to  our  Govern- 
ment at  a  lower  price  than  the  other  leading  nations 
of  the  world  pay  for  their  armor. 

Why  tax  the  people  to  build  a  Government 
monopoly  to  crush  this  particular  industry?  .  . 

Philadelphia  Bulletin,  June  22,  1916 

AN  $11,000,000  HOBBY  HOBSE 

.  .  .  The  Bethlehem  Steel  Company  invites  a 
contract  for  five  years  at  prices  that  shall  be  satis- 
factory to  the  Government;  it  now  offers  to  fill 
the  Government  contracts  at  cost  and  such  over- 


Why  tax  the  people  to  build  a  Government 
monopoly  to  crush  this  particular  industry?  .  . 


Philadelphia  Public  Ledger,  June  S,  1916 


46 


What  People  Are  Thinking— Editorial  Comment 


Pennsylvania- 


Continued 


head  expense  as  shall  be  admitted  by  the  Federal 
Trade  Commission. 

The  quality  of  the  work  done  by  this  concern, 
its  capacity  for  immediate  production  and  its 
general  reliability  are  beyond  question.  Its  plant 
and  experience  are  all  that  can  be  desired. 

The  Government  cannot  hope  to  improve  on 
manufacturing  conditions  in  any  plant  or  organiza- 
tion of  its  own. 

It  has  nothing  to  gain,  and  a  chance  to  lose  much 
in  its  experiment  with  the  eleven  million  dollars  that 
ought  to  be  appropriated  toward  the  construction 
of  a  battleship. 


Allentown  Call,  March  29,  1916 

BETHLEHEM'S  PLAN  GOOD  ONE  FOR 
THE  GOVERNMENT 

.  .  .  President  E.  G.  Grace  of  the  Bethlehem 
Steel  Company  last  week  told  the  Naval  Affairs 
Committee  of  the  House  of  Representatives  that  his 
company  is  willing  to  make  all  the  armor  needed  at 
a  price  to  be  fixed  by  the  Federal  Trade  Commission. 

This  proposition  virtually  would  make  the  Beth- 
lehem Steel  Company  a  Government  plant. 

The  Government  cannot  hope  to  make  armor 
cheaper  than  Bethlehem  with  all  its  twenty-nine 
years  of  experience  and  pay  the  interest  upon  an 
investment  of  $11,000,000. 

There  is  no  use  in  putting  up  a  new  plant  when 
there  is  an  excellent  one  here  already,  prepared  to 
turn  out  all  the  work  necessary. 

There  is  no  wisdom  in  causing  the  scrapping  of  a 
$7,000,000  business  at  Bethlehem,  yet  that  is  what 
would  be  the  almost  inevitable  result  if  the  Govern- 
ment were  to  take  away  all  its  business  from 
Bethlehem. 

The  big  question  is  not  however  that  of  the  interest 
of  the  Bethlehem  Steel  Company  or  the  interests 
even  of  the  thousands  of  workmen  in  the  Lehigh 
Valley  and  the  population  dependent  upon  them. 

The  question  is  one  of  national  economy 
and  sound  public  policy.  .  .  . 


The  Government  armor  plant  is 
bound  to  be  a  costly  experiment 
and,  we  fear,  a  costly  failure. 

— Homestead  News-Messenger 
June  IS,  1916 


Homestead  News-Messenger,  June  13,  1916 

.  .  .  The  policy  of  the  Government  going  into  a 
highly  skilled  business  and  becoming  a  manufac- 
turer in  a  large  way  is  more  than  doubtful. 

It  means  almost  certain  loss  to  the  Government 
with  eminent  risk  of  imperfect  work  to  be  tried  out 
by  the  new  plant. 

Of  course,  if  the  Government  would  employ  the 
right  men  at  the  most  advantageous  point,  it  could 
make  armor  steel  of  a  good  quality,  though  prob- 
ably not  as  cheaply,  as  any  private  concern  could 
turn  it  out. 

There  is,  however,  no  certainty  that  it  would  do  so. 

The  Government  armor  plant  is  bound  to  be 
a  costly  experiment  and,  we  fear,  a  costly  failure. 

Harrisburg  Patriot,  April  27, 1916 

LINK  ARMS  WITH  PUBLIC 

In  one  of  its  recent  communications  to  Congress 
appealing  against  a  Government  armor  plate  plant, 
the  Bethlehem  Steel  Company  says  in  its  title, 
"A  Mistake  in  the  Policy  of  the  Bethlehem  Steel 
Company." 

The  mistake,  one  later  learns,  has  been  the  com- 
pany's hitherto  refusal  to  take  the  pubhc  into  its 
confidence;  its  failure  to  reply  to  accusations  made 
against  it. 

As  a  result  of  these  "mistakes"  the  company  says 
it  has  suffered  at  the  hands  of  public  opinion. 

Doubtless  the  company  is  correct  in  its  estimate, 
and  doubtless  most  other  companies,  if  they  review 
their  pasts,  will  come  to  the  same  conclusion. 

It  is  a  fact  that  the  Bethlehem  is  only  one  of  many 
corporations  which  have  concluded  that  it  is  folly  to 
conduct  one's  business  not  only  in  disregard  of  the 
pubhc  interest  but  of  pubhc  information. 


47 


What  People  Are  Thinking— Editorial  Comment 


Pennsvlvania- 


Continued 


Harrisburg  Star-Independent,  May  25,  1916 

BETHLEHEM  STEEL'S  NEW  POLICY 

The  policy  of  the  Bethlehem  Steel  Company 
toward  the  general  public  has  changed;  henceforth  it 
will  take  the  people  into  its  confidence  through 
publicity,  according  to  its  announcement  yesterday. 

The  refusal  of  a  corporation  to  allow  details  of  its 
dealings  to  be  known  instead  of  taking  the  public 
into  its  confidence  is  a  mistake — the  Bethlehem 
Company  admits  it  by  the  caption  of  its  announce- 
ment, which  reads:  "A  Mistake  in  the  Policy  of 
the  Bethlehem  Steel  Company." 

While  it  is  a  "catch-line"  of  no  mean  attracting 
power,  its  truth  is  borne  out  in  the  announcement 
which  has  to  do  with  the  Schwab  concern's  offer  to 
seU  armor  plate  to  the  United  States  at  a  price  the 
Government  shall  determine. 

On  the  face  of  it  this  is  even  a  better  opportunity 
than  the  average  business  men  get  in  dealings  with 
one  another. 

The  Bethlehem  Steel  Company  has  a  story  of 
interest  to  tell  to  the  American  citizenship  and  has 
agreed  to  pursue  a  policy  of  publicity  through  the 
newspapers  to  get  this  story  before  the  people  who 
make  up  the  Government.  .  .  . 


Johnstown  Gazette-Times,  March  23,  1916 

NOT  HELPFUL  TO  THE  NATION 

.  .  .  The  proposition  of  the  Bethlehem  Steel 
Corporation  to  supply  armor  plate  to  the  navy  at  a 
reduced  price  stated  or,  as  an  alternative,  at  a  price 
which  "will  be  entirely  satisfactory"  to  the  Secretary 
of  the  Navy  after  ascertainment  of  the  cost  of  manu- 
facture, may  be  taken  as  an  earnest  of  the  Company's 
intent  to  be  fair  as  well  as  a  final  effort  to  forestall 
disaster  to  itself. 

It  is  worth  most  careful  consideration. 

As  the  impulse  to  the  movement  for  a 
Government  plant  is  the  belief  that  the  manu- 
facturers have  been  charging  exorbitant  prices, 
it  is  only  just  that  the  facts  be  definitely 
ascertained. 

The  product  of  the  private  manufacturers  has  been 
satbfactory;  there  is  no  certainty  as  to  how  soon  a 


Government  plant  would  develop  beyond  the  stage 
of  experiment. 

Here  is  a  chance  for  the  Government  to  get 
valuable  information  that  perhaps  it  does  not  possess, 
despite  inquiries  which  it  has  made. 

If  a  pubUcly  owned  plant  would  be  a  mistake,  now 
is  the  time  for  those  who  are  sure  it  would  be  a 
blessing  to  find  it  out. 

Pittsburg  Dispatch,  March  26,  1916 

THE  ARMOR  PLATE  FOLLY 

...  It  is  impossible  to  imagine  any  possi- 
bility of  advantage  to  the  Government  in  going 
ahead  with  this  project,  but  it  is  quite  clear 
how  it  can  do  inestimable  damage  to  our  pre- 
paredness facilities. 

First,  the  Government  plant  cannot  be  built 
within  four  years.  Is  Secretary  Daniels  prepared  to 
delay  the  construction  of  ships  authorized  a  year 
ago,  and  not  yet  begun,  another  four  or  five  years? 

With  the  Government  given  a  monopoly  of  armor 
making  what  will  be  left  for  the  private  manufac- 
ters  but  to  go  out  of  business? 

The  nation  will  then  be  just  that  much  less  able  to 
furnish  armor  should  war  threaten.  Would  it  not  be 
wiser  to  follow  the  German  custom  and  encourage, 
rather  than  destroy,  private  enterprises  able  to 
supply  armor,  guns  and  munitions  in  emergency? 

Pittsburg  Press,  March  27,  1916 

PROMISES  OF  PIE 

The  Bethlehem  Steel  Company's  appeal  to  Con- 
gress to  be  honest  and  just  in  the  armor  plate  matter 
would  not  be  without  effect  if  there  were  fewer 
demagogues  in  Congress,  or  if  there  were  more  than 
one  State  interested  in  the  armor  plate  industry. 

As  it  is,  the  Company  is  probably  wasting  its 
eloquence.  Doubtless  the  administration  wire- 
pullers have  promised  no  less  than  two  dozen  States 
that  they  shall  have  the  proposed  Government  plant. 
For  an  administration  whose  head  "has  no  motives 
less  than  six  feet  tall"  this  one  is  particularly  free 
from  scruples  as  to  promises  of  pie. 


48 


What  People  Are  Thinking — Editorial  Comment 


Pennsylvania. 


Pittsburg  Leader,  March  30,  1916 

LOOKING  FOR  WAR 

.  ,  .  The  Bethlehem  Company  guarantees  to 
make  the  armor  for  a  price  equal  to  the  lowest  possi- 
ble cost  in  a  Government  mill.  That  teikes  away  the 
question  of  price.  It  leaves  no  decent  ground  upon 
which  to  build  a  Government  plant. 

The  Bethlehem  and  other  armor  plants  can  make 
armor  plate  better,  quicker,  and  at  as  low  a  cost  as  a 
Government  plant  at  the  highest  efficiency.  .  . 

.  .  .  Under  the  terms  of  the  guarantee  made  by 
the  Bethlehem  Company  the  Government  can  get  all 
the  armor  plate  it  needs  at  the  same  cost  at  which  a 
Government  plant  could  make  it.  .  .  . 


Williamsport  Sun,  May  26,  1916 

CORPORATE  PUBLICITY 

Another  giant  corporation  has  recognized  the 
proper  value  of  pubUcity.  The  Bethlehem  Steel 
Company  has  just  announced  that  hereafter  its 
poUcy  will  be  to  take  the  pubhc  into  its  confidence 
and  through  circulars  and  newspapers  will  make 
known  its  inside  workings,  so  far  as  possible. 

This  is  the  pohcy  adopted  some  time  ago  by  the 
Pennsylvania  Raikoad  £uid  other  great  raihoad 
systems,  and  from  which  they  would  not  now  depart. 
It  is  one  of  the  means  by  which  the  raikoads  have 
advanced  so  rapidly  during  the  last  few  yeeu*s. 
"Tell  the  other  fellow  your  business  and  he  can 
not  help  taking  an  interest  in  it." 

That  would  be  a  good  slogan  for  any  large  business 
man  to  pursue  if  he  would  hold  the  confidence 
of  the  people  with  whom  he  wishes  to  trade.  If 
a  man  nowdays  has  something  to  sell,  it  must  be 
shown  above  the  counter,  and  the  purchaser  must 
have  an  opportunity  to  prove  and  test  the  goods. 
In  other  words,  the  pubHc  is  much  wiser  than  it 
was  years  ago.  It  reads  and  it  understands.  The 
newspapers,  with  their  possibhties  of  wide  dissemina- 
tion of  information,  are  largely  responsible  for  this 
condition. 

The  Bethlehem  Steel  Company,  hitherto  one  of 
the  most  close-mouthed  corporations  in  the  country, 


Continued 


announces  that  it  has  made  a  mistake  in  the  past 
in  not  letting  the  pubhc  know  something  about 
its  business. 

The  announcement  of  its  new  policy  is  headed 
"A  Mistake  in  the  Pohcy  of  the  Bethlehem  Steel 
Company."  In  its  oiTer  to  the  United  States 
Government  to  sell  armor  plate  at  a  price  to  be 
determined  by  the  Government,  the  steel  company 
has  a  story  of  great  interest  to  every  American, 
and  it  cannot  get  that  story  to  the  ears  or  eyes  of 
every  American  without  the  aid  of  the  newspapers 
and  other  means  of  pubUcity.  Hence  the  steel 
compeuiy's  reverse  pohcy. 

Recent  years  have  seen  many  changes  in  the 
pohcies  of  corporations  toward  the  pubhc  but 
none  have  undergone  more  extensive  change  than 
the  pohcy  of  pubhcity. 

Contests  for  cuid  against  legislation  have  been 
carried  on  in  late  years  through  newspaper  adver- 
tising to  the  mutual  advantage  of  the  corporations 
and  the  people  who  before  were  kept  in  ignorance 
of  the  plans  and  programs  of  big  business,  with  the 
result  that  there  was  always  an  enveloping  cloud 
of  suspicion  and  distrust  about  its  business  in  the 
minds  of  the  pubhc. 

All  corporations,  leu-ge  and  small,  should  see 
the  value  of  pubhcity  and  should  so  shape  their 
pohcies  that  aU  matters  of  pubhc  interest  should 
be  presented  to  the  pubhc  in  the  right  manner, 
through  official  announcement  by  corporation 
officials . 

Such  a  course  has  a  constant  steadying  influence 
upon  big  business,  tending  to  remove  those  practices 
which  in  times  past  laid  them  under  the  burden 
of  public  suspicion  and  condemnation,  from  which 
they  have  been  suffering  grievously  of  late. 


THAT   ARMOR   PLATE   PLANT 

.  .  .  There  really  should  be  a  way  of 
handling  the  armor  problem  that  would 
render  a  Governnaent  plant  an  un- 
necessary luxury. 

— Jownstown  Democrat 
June  S,  1916 


49 


What  People  Are  Thinking — Editorial  Comment 


Pennsylvania. 


Johnstown  Democrat,  April  7,  1916 

THE  BETHLEHEM  PEOPLE 
SCORE 

The  Bethlehem  Steel  Company  has  succeeded 
admirably  in  presenting  not  only  an  impressive  but 
a  dignified  opposition  to  the  Government  armor 
plate   mill   proposition. 

The  steel  company's  case  is  stated  frankly — and 
publicly. 

There  has  been  no  disposition  to  distort  the  facts 
and  every  possible  effort  to  stimulate  discussion  has 
been  put  forth.  .  .  . 


...  It  is  in  the  concluding  paragraph  of  its 
latest  statement,  however,  that  the  Bethlehem  Steel 
Company  makes  a  ten  strike.    It  says : 

"We  offer  to  place  all  the  cards  on  the  table — to  open 
our  books  to  the  Federal  Trade  Commission,  and  to 
pit  our  experience,  our  facilities  and  our  economies 
at  the  service  of  the  nation  upon  such  terms  as  the 
Government  itself  shall  name  as  fair." 

It  would  be  impossible  to  ask  for  a  more  reassuring 
statement.  The  Government's  whole  case  is 
conceded.  "You  want  fair  treatment,"  says  the 
steel  company.  "Very  well,  you  tell  us  what  is 
fah." 

Up  to  the  present  time  the  armor  plate  people 
seem  to  have  the  beat  of  the  argument. 


Continued 


Johnstown  Leader,  July  6,  1916 

NO  COST  ACCOUNTING  SYSTEM 

Bethlehem  Steel  Company,  in  its  Uttle  reminders 
to  Members  of  Congress,  calls  attention  to  the 
refusal  of  the  House  to  amend  the  Tillman  $11,000,- 
000  armor  plant  bill  so  as  to  provide  a  system  of 
bookkeeping  exhibiting  every  item  of  expense,  direct 
and  collateral,  which  may  be  charged  against  the 
preparation  of  plans,  the  selection  and  purchase  of  a 
site,  construction  and  equipment  of  the  proposed 
plant  and  the  cost  per  ton  of  the  output. 

Refusal  to  institute  an  adequate  cost  accounting 
scheme,  says  the  steel  company,  means  that  the 
people  will  never  know  what  Government-made 
armor  costs. 

Why  should  they  know? 

Under  Democratic  administration  this  Govern- 
ment is  not  run  that  way. 

The  object  of  the  Tillman  bill  is  not  to  produce 
good  armor,  at  any  price,  high  or  low. 

It  is  to  use  some  sentiment,  created  by  false  state- 
ments, as  an  entering  wedge  for  Government 
ownership. 

To  figure  costs  and  make  public  the  figures  would 
betray  the  weakness  of  the  whole  Government 
plant  argument. 


50 


What  People  Are  Thinking— Editorial  Comment 

Rhode  Island 


Providence  Bulletin,  March  24,  1916 

BETHLEHEM'S  OFFER 

...  If  the  House  and  President  Wilson  are 
determined  to  back  up  Senator  Tillman  and  Secre- 
tary Daniels  in  an  adventure  which  will  not  reduce 
the  cost  of  armor-plate,  but  which  will  reduce  our 
national  resources  for  manufacturing  it,  they  will 
of  course  follow  the  lead  of  the  Senate  and  refuse 
to  entertain  the  very  fair  proposal  of  the  Beth- 
lehem Company. 

If  "pork"  for  poUticians  and  cheap  political 
capital  to  be  coined  out  of  trust-baiting  are  not 
the  true  objects  of  the  Tillman  bill,  that  foolish 
experiment  in  Government  ownership  and  operation 
will  be  abandoned. 


Providence  Journal,  June  22,  1916 

THE  ARMOR  PLATE  ISSUE 

...  It  would  be  unfair,  of  course,  to  destroy, 
by  Government  competition,  the  business  created 
by  private  capital  expressly  for  the  Government, 
the  only  customer  for  armor  plate. 

The  capital  invested  has  had  a  fair  return,  very 
likely,  and  is  entitled  to  it.  If  the  profits  have 
been  excessive — and  that  has  not  been  shown  in 
any  of  the  hearings  before  the  Congress  committees 
— it  is,  nevertheless,  a  consideration  of  importance 
at  the  present  juncture,  that  the  operation  of  a 
Government  plant  would  probably  cost  the  tax- 
payers excessively. 

It  is  a  tolerably  safe  assumption,  in  short,  that 
the  country  would  be  money  in  pocket  if  the 
stifTest  prices  were  paid  for  private  work,  by  contrast 
to  the  inevitable  extravagance  of  Government 
operation.  .  . 


Providence  Tribune,  July  2,  1916 

GOVERNMENT  INEFFICIENCY 

New  legislation  actually  penalizing  methods  of 
efficiency  in  Government  industrial  establishments 
is  apparently  going  through,  in  spite  of  all  the  efforts 
by  business  men,  engineers  8uid  manufacturers  to 
stop  it. 

Unless  the  President  interferes  with  a  veto,  the 
Fortifications  Appropriation  bill  will  go  into  effect 
carrying   Representative   Tavenner's   rider   which , 
prohibits   scientific    management    in    Government 
establishments. 

This,  however,  will  be  only  another  illustration  of 
the  shameful  fact  that  Congress  cares  nothing  for 
cost  of  production. 

The  Senate,  for  example,  rejected  even  the  pro- 
posal for  the  investigation  of  the  cost  of  armor  before 
ordering  the  establishment  of  an  armor  plate  plant; 
and  the  Navy  Appropriation  Bill  carries  as  a  rider  a 
clause  imposing  a  fine  and  imprisonment  on  any 
Government  official  who  uses  the  methods  of 
efficiency  which  alone  can  produce  cheap  armor  or 
anything  else. 


51 


What  People  Are  Thinking— Editorial  Comment 

South  Carolina 


Rock  Hill  Herald,  May  31,  1916 

A  REMARKABLE  NATION-WIDE 
ADVERTISING  CAMPAIGN 

.  .  i  The  Herald  commends  the  wisdom  and 
foresight  of  the  great  corporation  in  adopting 
the  only  plan  that  will  bring  its  side  of  this  con- 
troversy clearly  and  forcefuUy  to  the  attention 
of  all  the  people. 

People  of  all  classes  read  advertising,  and  they 
will  read  the  advertising  of  the  Bethlehem  Com- 
pany, and  at  the  conclusion  of  the  campaign 
millions  of  American  citizens  will  have  an  accurate 
knowledge  of  the  tu-guments  upon  which  this  con- 
cern bases  its  conclusion  that  the  Government 
ought  not  to  become  its  competitor  in  the  manu- 
facture of  armor  plate. 


52 


What  People  Are  Thinking — Editorial  Comment 

South  Dakota 


Sioux  Falls  Argus-Leader,  March  23,  1916 

OFFER  BETTER  THAN  THREAT 

An  offer  by  the  Bethlehem  Steel  Company  to 
cut  the  price  of  armor  plate  $30  a  ton  has  been 
made  to  the  Government  while  the  Tillman  bill  is 
pending  to  establish  a  Government  armor-plate 
factory.  This  is  much  better  than  the  threat  to 
advance  the  price  on  Government  requirements 
pending  the  time  required  to  put  the  Government 
mill  in  commission. 

«  *  4c 

[We  have  made  no  threat  to  advance  the  price  of 
armor  pending  the  time  required  to  put  a  Government 
plant  in  commission.    {See  Series  1,  Bulletin  7.) 

Bethlehem  Steel  Company.] 


Sioux  Falls  Argus-Leader,  June  2,  1916 

TARING  THE  PUBLIC  INTO 
ITS  CONFIDENCE 

The  Bethlehem  Steel  Company  has  at  last  realized 
the  importance  of  taking  the  pubUc  into  its  confi- 
dence and  by  the  use  of  newspaper  pubUcity,  it  is 
explaining  to  the  people  the  exact  situation  in  the 
armor  plate  field. 

The  company  points  out  that  the  Government  is 
its  only  customer  for  armor  plate,  and  that  it  is 
willing  to  supply  the  Government  with  armor  plate 
at  its  own  price. 

The  company  asks  that  it  be  regulated  by  a 
Government  commission  and  its  directors  say  the 
company  is  wiUing  to  supply  armor  plate  to  the 
Government  at  any  price  the  Government  may  fix. 

The  movement  for  a  Government  armor  plate 
factory  may  have  gone  too  far  to  stop. 

If  not,  it  would  seem  to  this  newspaper  good 
business  to  accept  the  Bethlehem  proposition, 
keeping  the  Government  factory  in  reserve  until 
such  time  as  its  construction  may  be  more  needed 
than  now. 


It  would  seem  to  this  newspaper  good  business  to  accept  the  Bethlehem 
proposition,  keeping  the  Government  factory  in  reserve  until  such  time 
as  its  construction  may  be  more  needed  than  now. 

— Sioux  Falls  Argus-Leader,  June  2, 1916 


53 


What  People  Are  Thinking— Editorial  Comment 

Tennessee 


Nashville  Banner,  April  27,  1916 

THE  ARMOR  PLATE  BILL 

...  As  a  rule,  the  Government  can  be  better 
served  by  private  enterprise  than  by  a  Govern- 
ment-owned plant.  Experience  has  given  ample 
proof  that  politics  go  so  inevitably  into  any  public 
undertaking  as  to  impair  its  efficiency  and  increase 
expenses. 

It  would  be  practically  impossible  to  put  into 
a  plant  managed  by  Government  employes  and 
filled  in  all  departments  by  men  receiving  appoint- 
ment through  poUtical  influence,  that  same  com- 
pact organization,  competency  and  operative  effi- 
ciency shown  in  the  plants  of  the  great  corporations. 

.  .  .  There  is  no  sympathy  wasted  by  the 
American  public  on  "big  business,"  but  that 
feeling  should  not  lead  the  Government  to 
do  anything  to  its  own  detriment,  and  there 
are  grave  reasons  to  doubt  that  the  Senate  bill 
providing  for  a  Government  armor  plant  is 
a  wise  one. 


Jackson  Sun,  April  26,  1916 

A  CHANGE  OF  ATTITUDE 

The  Bethlehem  Steel  Company,  the  biggest  manu- 
facturer of  armor  plate  in  the  United  States,  is  send- 
ing out  some  pretty  sound  6U"guments  against  the 
establishment  of  a  Government  armor  plant  and 
seeking  by  the  legitimate  use  of  publicity  to  create 
friendly  public  sentiment  in  opposition  to  the  estab- 
Ushment  of  the  Government  plant. 

But  it  is  a  significant  fact  that  the  Bethlehem 
Company  did  not  begin  this  appeal  to  public  senti- 
ment or  make  any  effort  to  prove  the  soundness  of  its 
position  until  after  the  Senate  passed  a  bill  to  con- 
struct an  armor  plant  at  a  cost  of  $11,000,000. 
Before  that  time  the  Bethlehem  Company  was  stiflf 
necked  and  haughty.  It  threatened  to  raise  the 
price  of  armor  plate  if  such  a  biU  was  even  introduced 
in  Congress.  It  bluffed  until  it  had  but  one  card  left. 
It  threatened  until  the  Senate  took  the  dare  and 
passed  the  bill. 

Then  there  was  a  change  in  the  attitude  of  the 
armor  plate  monopoUsts.    The  price  of  armor  plate 


was  reduced  and  further  reductions  were  promised. 
The  best  lawyers  and  publicity  men  in  the  country 
were  mobiUzed  to  make  a  fight  against  the  passage  of 
the  bill  in  the  House  and  to  convince  the  people  that 
the  construction  of  a  Government  plant  is  unneces- 
sary. 

Most  of  the  arguments  made  in  the  Bethlehem's 
propaganda  are  plausible.  All  of  it  may  be  abso- 
lutely true. 

But  Congress  should  proceed  with  the  passage  of 
the  Government  armor  plate  bill  unless  the  steel 
trust  will  agree  to  a  contract  that  carries  a  reasonable 
price  for  many  years  to  come. 

[Our  offer  is  to  make  armor  at  a  price  to  be  fixed  by 
the  Federal  Trade  Commission,  and  for  any  period 
which  the  Government  itself  may  name. 

Bethlehem  Steel  Company.] 


Memphis  News- Scimitar,  April  28,  1916 

FAVORS  PUBLICITY 

The  action  of  the  Bethlehem  Steel  Company  is 
certainly  to  be  commended,  because  publicity  and  a 
placing  of  the  facts  before  the  people  will  permit  of  a 
fair  and  reasonable  and  a  just  solution  of  all  contro- 
versies. 

The  great  steel  company  admits  its  error,  and  it  is 
to  be  commended  for  its  prudence  in  changing 
its  methods. 


I 


54 


What  People  Are  Thinking — Editorial  Comment 

Texas 

Galveston  News,  June  2,  1916 

A  SPIRIT  OF  RESENTMENT 


.  .  .  Now  the  likelihood  of  the  erection  of  a  Gov- 
ernment plant  looms  large. 

The  Tillman  bill  appropriating  $11,000,000  for 
this  purpose  has  been  attached  to  the  naval  appro- 
priation bill  as  an  amendment.  It  must  be  admitted 
that  the  Government  has  had  ample  provocation  for 
adopting  this  policy. 

The  plea  of  the  armor  plate  manufacturers  that 
this  action  will  destroy  the  value  of  their  investment 
would  be  more  persuasive  if  one  could  be  free  of  the 
suspicion  that  they  long  ago  recovered  their  invest- 
ment in  the  excessive  prices  charged  the  Government. 
But  although  the  Government  has  ample  provoca- 
tion, it  is  not  so  clear  that  it  has  equal  reason  for 
engaging  in  the  manufacture  of  armor  plate. 

The  legislation  is  prompted  by  a  spirit  of  resent- 
ment, and  while  the  resentment  is  abundantly  justi- 
fied, resentment  is  oftener  a  foolish  than  a  wise 
counselor. 


The  legislation  is  prompted  by  a  spirit  of  resentment,   and  while  the 
resentment  is  abundantly  justified,  resentment  is  oftener  a  foolish  than  a  wise 

counselor. 

Galveston  News,  June  S,  1916 


55 


What  People  Are  Thinking — Editorial  Comment 

Vermont 


Rutland  Herald,  April  4,  1916 

GOVERNMENT  ARMOR  PLANT 

.  .  .  To  a  business  man,  nothing  could  be 
fairer  than  these  proposals,  and  any  business 
man  knows  that  no  Government-owned  and 
politically  operated  Gk>vernment  armor  plant 
can  produce  plate  so  cheaply  as  a  private 
concern. 

They  may  do  so  in  Japan,  where  a  thief  would 
be  simply  tortm-ed  or  beheaded  offhand,  but 
certainly  not  in  the  U.  S.  A. 


56 


What  People  Are  Thinking — Editorial  Comment 


Virginia 


Richmond  Times-Dispatch,  March  21,  1916 

SAVING  MONEY  ON  ARMOR 

.  .  .  There  is  much  force  in  the  contention  that 
the  Government  should  not  go  into  the  business  of 
armor  making  unless  forced  to  do  so.  A  steel  com- 
pany has  many  irons,  Uterally,  in  the  fire,  and  when 
it  is  not  making  armor  can  use  its  plant  and  force 
for  other  purposes. 

A  factory  conducted  by  the  nation,  for  a  restricted 
pa  pose,  enjoys  no  such  freedom  of  action. 

t  must  make  armor  or  permit  the  invested  capital 
to  )ecome  idle  and  unproductive,  while  its  employes 
are  thrown  out  of  work. 

If  arrangements,  along  the  general  hnes  of  the 
Bethlehem  Company's  proposition,  can  be  made  with 
all  the  steel  companies  and  the  interests  of  the 
Government  amply  and  fully  protected,  it  might  be 
wise  to  abandon  the  plan  to  construct  a  Government 
plaint. 


Clifton  Forge  Review,  June  16,  1910 

GOVERNMENT  ARMOR  PLANT 

The  Staunton  Daily  Leader  is  right  for  once  in 
opposing  the  expenditure  of  several  milhon  dollars 
for  the  erection  and  maintenance  of  an  armor  manu- 
facturing plant. 

Frequently  here  of  late  The  Review  has  taken  the 
position  that  it  is  a  mistake  for  the  Government  to 
go  into  competition  with  private  interests,  but  at  no 
time  have  we  been  as  emphatic  as  our  Staunton 
contemporary. 

In  a  late  edition  the  Leader  had  this  to  say  regard- 
ing the  recent  action  of  Congress  with  reference  to 
an  Eirmor  plate  plant. 

"Congress  seems  determined  to  build  an  armor 
plate  plant,  in  spite  of  the  fact  that  the  Bethlehem 
Steel  Company  offers  to  make  plate  for  the  Govern- 
ment, and  let  the  Government  fix  the  price.  .  .  . 

Newport  News-Press,  April  11,  1916 

FEDERAL  ARMOR  PLANT 

If  it  be  true,  as  charged  by  the  Bethlehem  Steel 
Company,  that  its  large  plant  was  erected  at  the 


request  of  the  Federal  Government,  it  would  not 
be  altogether  honest  for  the  Government  to 
establish  an  armor  manufacturing  plant  in  competi- 
tion to  private  interests.  .  . 

.  .  .  The  Bethlehem  Steel  Company  says  that 
it  has  manufactured  armor  plate  for  the  Govern- 
ment for  more  than  a  quarter  of  a  century,  and  in 
a  spirit  of  fairness  the  Company  has  issued  the 
following  statement  and  proposition  that  seems  to 
us  is  all  that  could  be  asked.  .  . 

"If  the  Government  utihzes  private  plants  to 
make  its  armor,  it  can  exact  conditions  as  to  quahty 
and  obtain  the  benefit  of  economies,  difficult  if 
not  impossible  to  realize  in  Government  manu- 
facture itself." 

The  above  strikes  us  as  being  reasonably  fair. 

We  hardly  see  how  this  corporation  could  do 
more  than  is  pledged  in  its  own  words  quoted  above. 

Congress  will  do  well  to  consider  all  the  facts  and 
not  act  hastily  in  this  matter. — Clifton  Forge 
Review. 

Norfolk  Ledger-Despatch,  April  14,  1916 

ARMOR  PLATE  PLANT 

The  $11,000,000  can  well  be  expended  in  a  bene- 
ficial manner  to  the  people,  and  it  is  not  assured 
that  the  Government-owned  plant  could  turn 
out  better  material,  or  to  be  operated  so  as  to 
lessen  the  prices  guaranteed  by  the  Bethlehem 
Company.  It  might  be  well  to  accept  the  offer 
of  the  company  for  a  period  at  least,  £md  hold  the 
Government  plant  for  future  consideration. 


Roanoke  World-News,  April  11,  1916 

ARMOR  MAKING 

In  connection  with  the  proposition  to  have  the 
American  Government  manufacture  armor  plate 
for  its  warships,  it  is  extremely  interesting  to  note 
how  aggressively  some  people  want  to  push  America 
into  Socialism  in  actual  practice,  but  proclaim  in 
virid  language  utter  opposition  to  Socialism  as  a 
theory  or  doctrine. 

The  list  of  enterprises  which  naturally  belong  to 


57 


What  People  Are  Thinking — Editorial  Comment 


Virginia- 


Continued 


citizens  and  should  originate  and  be  conducted  by 
citizens,  but  which  have  been  and  are  being  con- 
fiscated by  Government,  is  growing  larger  every 
year.  .  . 

We  do  not  propose  to  defend  armor  plate  manu- 
facturers. 

We  know  practically  nothing  of  their  methods  or 
of  the  expense  and  profit  accounts  of  their  book- 
keeping; but  we  do  know  that  they  have  many 
millions  invested  in  their  plants  and  that  these 
miUions  will  be  a  total  loss  should  Government 
decide  to  make  armor  plate  for  itself.  .  . 

Staunton  Leader,  June  10,  1916 

GOVERNMENT  ARMOR  PLATE 
PLANT 

Congress  seems  determined  to  build  an  armor 
plate  plant,  in  spite  of  the  fact  that  the  Bethlehem 
Steel  Company  offers  to  make  plate  for  the  Govern- 
ment, and  let  the  Government  fix  the  price.  .  . 

...  If  these  statements  are  not  true,  Congress 
ought  to  be  able  to  show  that  they  are  not  true. 

If  they  Eire  true,  and  we  believe  they  are  true, 
then  it  would  seem  hke  a  reckless  expenditure  of 
the  people's  money  to  build  a  Government  plant. 

We  venture  the  prediction  the  Government  never 
will  turn  out  a  ton  of  first  class  armor  plate  at  as 
low  a  cost  as  the  price  at  which  the  three  big  com- 
panies are  now  selling  this  plate  to  the  Govern- 
ment, for  the  reason  that  the  public  conduct  of 
business  in  this  country  has  always  proved  very 
costly. 

Experience  has  shown  that  it  is  better  to  buy 
from  private  concerns  than  for  the  Government 
to  do  this  own  manufacturing. 


58 


What  People  Are  Thinking — Editorial  Comment 


Washington 


Seattle  Post-Intelligencer,  April  11,  1916 

BETHLEHEM'S  OFFER 

In  view  of  the  very  frank  and  patriotic  offers 
of  the  Bethlehem  Steel  Company  to  the  Gov- 
ernment of  the  United  States,  the  adoption  of  the 
bill  to  appropriate  $11,000,000  for  a  Government 
armor  plate  plant  would  appear  to  propose  an  un- 
necessary extravagance.  .  . 

.  .  .  The  Bethlehem  Steel  Company  is  a 
responsible  corporation,  one  of  the  strongest 
financially  in  this  country,  and  the  Govern- 
ment may  safely  make  formal  acceptance 
of  its  offer  and  devote  the  proposed  $11,000,000 
appropriation  to  some  purpose  more  urgently 
necessary. 

It  is  a  business  offer  in  concrete  language. 

Either  the  Government  needs  an  su-mor  plant 
or  it  does  not,  and  the  logic  of  existing  circum- 
stances indicates  that  it  does  not. 


Seattle  Post-Intelligencer,  July  5,  1916 

ANOTHER  PRECEDENT 

There  is  little  doubt  that  Congress  will  stick  to 
its  determination  to  spend  $11,000,000  in  building 
an  armor  plate  plant,  for  the  express  purpose  of 
rendering  valueless  the  existing  plants,  which  were 
created  for  the  sole  purpose  of  furnishing  the 
Government  needed  armor  plate  and  rendering 
the  United  States  independent  of  foreign  countries. 
However,  if  the  Democratic  Congress  does  this  it 
will  follow  one  precedent  which  it  set  as  soon  as 
it  came  into  power  after  the  civil  war. 

When  the  country  awakened  to  the  fact  that  its 
navy  had  disappeared  and  that  there  was  not  a 
ship  afloat  of  a  modern  type,  it  was  faced  with  the 
difficulty  that  there  was  a  plant  in  the  United 
States  equipped  at  the  time  to  construct  a  modern 
warship  of  any  description.  Before  a  start  could 
be  made  upon  building  a  navy  it  was  necessary 
to  have  plants  capable  of  building  warships. 

John  Roach,  whose  plant  was  the  only  one  in 
the  country  capable  of  being  equipped  for  the 
purpose,  was  invited  to  make  tenders  for  the  con- 


struction of  a  dispatch  boat  and  three  cruisers, 
the  Atlanta,  Boston  and  Chicago,  the  famous 
"white  squadron."  He  built  a  plant  for  this  purpose 
and  constructed  these  vessels.  One,  the  dispatch 
boat  Dolphin,  was  completed  and  had  a  satisfactory 
trial  trip.  But  the  administration  changed  hands 
and  Cleveland  took  office.  His  Secretary  of  the 
Navy,  William  C.  Whitney,  refused  to  accept 
the  Dolphin  and  withheld  payment  for  her.  He 
decided  that  the  contracts  under  which  the  other 
vessels  were  building  would  not  hold  and  sought 
to  cancel  them,  in  the  meantime  witholding  pay- 
ments for  the  work  already  done. 

Roach  was  compelled  to  make  an  assignment, 
and  the  great  business  which  he  had  previously 
built  up,  before  risking  his  fortune  on  the  good 
faith  of  the  United  States,  was  nearly  ruined. 
Within  two  years  thereafter  he  died,  never  having 
recovered  the  shock  of  the  broken  contracts,  which 
brought  him  to  the  verge  of  ruin  £uid  swept  away 
most  of  the  fortune  which  he  had  previously  built 
up. 


.  .  .  The  Bethlehem  Steel  Com- 
pany is  a  responsible  corporation, 
one  of  the  strongest  financially  in 
this  country,  and  the  Government 
may  safely  make  formal  acceptance 
of  its  offer  and  devote  the  proposed 
$11,000,000  appropriation  to  some 
purpose  more  urgently  necessary. 

— Seattle  Intelligencer 
AprU  11, 1916 


59 


What  People  Are  Thinking— Editorial  Comment 


West  Virginia 


Wheeling  News,  April  5,  1916 

A  BUSINESS  PROPOSITION 

.  .  .  There   is   no    sentiment   whatever   in- 
volved in  the  armor  plate  question. 
It    is  simply   a   business   proposition. 

Japan  has  a  Government  plant  and  her  armor 
plate  is  costing  her  $490  a  ton.  It  seems  reason- 
able to  assume  that  it  would  be  impossible  for 
the  United  States  to  produce  armor  plate  in  a 
Government  plant  at  $395  a  ton. 

This  could  be  determined  by  the  investigation 
which  the  Bethlehem  company  has  invited. 

Then,  if  a  Government  plant  would  lose  millions 
instead  of  effecting  a  saving,  why  build  it? 


Wheeling  News,  April  18,  1916 

THE  ARMOR  PLATE  BILL 

.  .  .  Whether  or  not  the  Tillman  bill  was  for- 
mulated as  a  "pork"  measure  it  would  certainly 
be  an  admirable  instrument  for  "pork"  purposes. 

The  big  point  is  that  the  offer  of  the  armor  plate 
men  to  furnish  plate  for  five  years  at  a  low  price 
has  removed  the  excuse  for  a  Government  plant. 


Wheeling  News,  April  13,  1916 

WHY  NOT  TAKE  IT? 

...  It  is  claimed  in  some  quarters  that  it  is  a 
"deathbed  repentance." 

Even  if  so,  why  should  the  Government  not 
take  advantage  of  the  splendid  opportunity  and 
avoid  the  huge  expense  of  an  armor  factory  just 
at  a  time  when  every  doUar  of  the  nation's  revenue 
is  very  badly  needed  for  other  purposes? 


WHY  NOT  TAKE  IT? 

.  .  .  It  is  claimed  in  some  quarters 
that  it  is  a  "deathbed  repentence." 

Even  if  so,  why  should  the 
Government  not  take  advantage  of 
the  splendid  opportunity  and  avoid 
the  huge  expense  of  an  armor  fac- 
tory just  at  a  time  when  every  dol- 
lar of  the  nation's  revenue  is  very 
badly  needed  for  other  purposes? 

— Wheeling  News 
April  13, 1916 


60 


What  People  Are  Thinking — Editorial  Comment 

Wisconsin 


MUwaukee  Wisconsin,  March  31,  1916 

A  COSTLY  EXPERIMENT 

The  Bethlehem  Steel  Company  has  presented 
an  ofTer  to  make  armor  for  the  United  States  at 
a  price  the  Government  itself  shall  name  as  fair. 

The  investment  of  eleven  million  dollars  in  the 
construction  of  a  Government  plant  to  manufacture 
armor  would  involve  the  objections  that  attach  to 
all  schemes  of  Government  ownership. 

Broaching  that  plan  has  had  the  effect  of  bringing 
down  the  prices  at  which  private  concerns  offer 
to  make  the  armor,  and 

Undoubtedly  it  would  be  good  business  policy 
for  Congress  to  avoid  costly  experiment  of  establish- 
ing a  Government  plant. 


Madison  Democrat,  June  9,  1916 

"THE  DANGER  OF  SILENCE" 

The  Bethlehem  Steel  Company  has  entered  upon  a 
campaign  of  newspaper  advertising  which  is  epoch- 
making. 

Display  advertising  space  is  being  utilized  in  a  list 
of  3,500  newspapers. 

The  purpose  is  to  present  to  the  whole  American 
people  the  case  of  the  Bethlehem  Company  in 
regard  to  the  proposed  estabUshment  of  a  Govern- 
ment armor  plant.  .  .  . 

.  .  .  Having  what  appears  to  be  an  unanswerable 
case,  the  Bethlehem  Steel  Company  is  taking  that 
case  direct  to  the  people  of  the  country. 

It  is  "laying  its  cards  on  the  table,"  submitting 
the  facts  without  evasion  or  indirection;  and  unless 
it  should  prove  that  this  action  has  been  taken  too 
late,  it  should  win.  .  .  . 


Milwaukee  Leader,  May  25,  1916 

SCHWAB'S  CONFESSION 

The  Bethlehem  Steel  Company  has  suffered  in 
silence. 

It  has  been  accused  of  gouging  the  Government. 

It  has  had  to  bear  the  odium  of  Carnegie's  blow 
holes. 

It  has  been  condemned  for  its  lack  of  patriotism 
in  seUing  armor  plate  cheaper  to  Russia  than  it 
has  sold  it  to  the  U.  S.  A. 

Congress,  moved  by  the  growing  clamor,  has 
voted  for  a  Government  armor-plate  factory.  It 
is  the  straw  that  has  broken  the  back  of  Beth- 
lehem's patience.  It  has  spoken  out.  From  now 
on  it  is  going  to  be  heard.    It  will  advertise. 

It  is  going  to  show  the  press  and  the  pubhc  that 
it  is  a  good  corporation.  It  has  akeady  shown 
the  pulpit.  There  is  no  finer  church  in  the  country 
than  the  church  that  Schwab  built  at  Bethlehem  in 
pious  recognition  of  the  Prince  of  Peace. 

Mr.  Schwab  is  engaged  in  the  munitions  industry. 
It  is  not  his  purpose  to  decry  or  depreciate  his 
own  business.  But  he  is  not  insensible  to  the  power 
of  the  press.  The  pen  is  mightier  than  the  sword. 
A  weU  timed  advertisement  speaks  louder  than  a 
42-centimeter  gun. 

We  have  an  idea  that  the  Bethlehem  Steel 
Company  will  find  that  advertising  pays.  There  has 
been  a  lot  of  thoughtless,  SociaUstic  agitation  in  the 
press  in  favor  of  Government  munitions  plants. 

Many  citizens  have  been  led  to  beUeve  that  if 
the  profit  could  be  taken  out  of  munitions,  the 
incentive  to  Isu-ge  £u*maments  and  even  to  war  would 
be  appreciably  diminished. 

It  is  an  error  which  the  conservative  and  re- 
spectable newspapers,  which  are  essentially  patriotic, 
should  be  able  to  dispel. 


61 


What  People  Are  Thinking — Editorial  Comment 

National 


The  Outlook,  June  14,  1916 

A  GOVERNMENT  ARMOR  PLANT 

The  great  blot  upon  the  Naval  Bill  is  the  provision 
for  the  construction  of  a  Government  fu^mor  plate 
plant  to  cost  $11,000,000. 

The  armor  plant  question  ought  not  to  be  con- 
fused with  the  question  of  the  increase  of  our  naval 
strength. 

If  the  Senate  and  House  are  in  favor  of  a  Govern- 
ment armor  plant,  let  them  say  so  in  a  separate 
bill  so  that  the  President  can  veto  it. 

.  .  .  We  may  also  remember  that  all  the  great 
naval  powers  (with  the  exception  of  Japan,  where 
there  was  never  a  private  armor  industry)  have 
utihzed  private  rather  than  Government  industries 
for  this  product.    The  reasons  for  this  are  plain. 

If  the  Government  utilizes  private  plants  to  make 
its  armor,  it  can  exact  conditions  as  to  quality  and 
obtain  the  benefit  of  certain  economies  difficult  to 
realize  in  Government  manufacture  itself. 

More  particularly,  Government  manufacture 
means  one  sub-department  of  the  Government 
contracting  with  another,  with  no  efficient  means 
to  enforce  contracts  as  regards  time  of  delivery. 

It  is  also  more  economical  to  operate  an  armor 
plant  in  connection  with  a  commercial  steel  plant. 


Finally,  the  army  of  experts  now  at  work 
in  our  private  plants  should  not  be  discrim- 
inated against. 

The  remedy  for  the  evils  of  armor  plate- 
making  lies,  as  in  the  case  of  railway  adminis- 
tration, not  in  Government  ownership  but  in 
efficient  Government  regulation. 


Printers  Ink,  New  York,  April  6,  1916 

BETHLEHEM  STEEL'S  "STATEMENTS 
TO  CONGRESS" 

.  .  .  Thus  another  representative  of  "big  business" 
signifies  its  belief  that  it  is  better  to  thrash  out 
public  questions  in  the  open  than  to  rely  wholly 
upon  the  subtleties  of  the  professional  lobbyist. 

We  do  not  doubt  that  the  statements  of  the 
Bethlehem  Steel  Company  will  be  characterized 
as  an  "insidious  attempt  to  undermine  public 
opinion"  but  public  opinion  can  pretty  safely  be 
trusted  to  judge  in  the  long  run  whether  it  is  being 
exploited  or  not. 

One  thing  is  absolutely  certain:  the  pubHc  is 
more  inclined  to  trust  the  concern  which  makes 
its  claims  public  than  the  one  which  appears  mainly 
desirious  to  keep  them  under  cover.  .  . 


There  will  be  no  cost-keeping 
in  the  new  plant,  by  order  of 
Congress. 

— Mining  Journal,  El  Paso,  Texas,  April  11,  1916 


62 


What  People  Are  Thinking — Editorial  Comment 


National- 


Continued 


Advertising  Age,  Chicago,  June,  1916 

TRUST  THE  PEOPLE 

One  by  one  the  big  corporations  are  taking  the 
public  into  their  confidence  by  placing  their  troubles, 
aims  and  policies  before  them  by  advertising. 

They  have  found  that  secrecy  breeds  distrust 
and  publicity  confidence. 

To  take  the  wind  out  of  the  sails  of  demagogs 
and  office  hunters,  publicity  has  worked  wonders. 

Since  it  has  started,  public  antagonism  against 
corporations  has  ceased  and  the  public,  always 
inclined  to  be  fair,  has  become  interested  in  the 
efficiency  methods  practiced  by  corporations. 

The  latest  convert  to  the  beneficial  aspects  of 
publicity  is  the  Bethlehem  Steel  Company.  It 
has  a  plant  for  manufacturing  armor  plate  in  which 
it  has  invested  $7,000,000. 

If  the  plan  of  Congress  to  build  a  Government 
plant  for  making  armor  plate  materializes,  the 
plant  of  the  Bethlehem  Steel  Company  would 
become  worthless. 

To  combat  this  plan,  the  company,  in  a  series 
of  ads  now  running  in  a  number  of  big  newspapers, 
proves  that  it  is  selling  to  the  Government  armor 
plate  at  lower  prices  than  paid  by  any  one  of  the 
great  powers  of  the  Old  World,  and  there  is  no  reason 
for  our  Government  to  build  its  own  plant  at  a 
cost  of  $11,000,000. 

To  head  off  those  who  may  claim  that  the  company 
would  at  once  raise  the  price  and  skin  the  Government 
as  soon  as  the  plan  to  erect  a  Government  armor 
plant  should  be  dropped,  the  company  offers  to 
have  for  any  length  of  time,  the  prices  fixed  by  the 
Federal  Trade  Commission,  a  Government  insti- 
tution. 


What  fairer  offer  can  a  business  concern  make? 

The  talk  of  the  Company  is  plain  and  convincing. 

It  does  not  try  to  play  the  role  of  a  pubUc 
benefactor. 

It  states  that  it  is  trying  to  save  and  preserve 
its  investment  in  the  $7,000,000  armor  plate  plant 
it  now  owns  and  is  wiUing  to  make  sacrifices  in 
this  regard. 

About  twenty-five  years  ago  President  Grover 
Cleveland  uttered  the  advice — "Trust  the  people." 
It  took  our  big  corporations  quite  a  long  time  to 
appreciate  and  practice  this  advice  of  a  plain, 
honest  and  far-seeing  president. 

Editor  and  Publisher,  New  York,  May  27,  1916 

"THE  DANGER  OF  SILENCE" 

.  .  .  Having  what  appears  to  be  an  unanswerable 
case,  the  Bethlehem  Steel  Company  is  taking  that 
case  direct  to  the  people  of  the  country. 

It  is  "laying  its  cards  on  the  table,"  submitting 
the  facts  without  evasion  or  indirection;  and 
unless  it  should  prove  that  this  action  has  been 
taken  too  late,  it  should  win. 

The  most  important  phase  of  this  matter  is  in 
the  belated  decision  by  a  great  corporation  that 
a  policy  of  secrecy  is  disastrous. 

Silence  on  the  part  of  a  corporation,  when  its 
interests  are  at  stake,  and  when  a  business  principle 
of  fundamental  importance  is  at  stake,  denotes  a 
fear  to  meet  the  issue  in  the  open. 

Corporations  generally  will  recognize,  in  this 
sensational  action  of  the  Bethlehem  Company, 
the  opportunity  open  to  them  for  trying  their 
cases  before  a  jury  of  the  whole  people — and  as 
this    method    gains    adherents    the    necessity    for 


The  remedy  for  the  evils  of  armor  plate-making  lies, 
as  in  the  case  of  railway  administration,  not  in  Govern- 
ment ownership  but  in  eflicient  Government  regulation. 

—The  Outlook,  June  U,  1916 


63 


What  People  Are  Thinking — Editorial  Comment 


NationaL 


Continued 


lobbyists  at  Washington  and  at  State  capitals,  of 
corruption  funds  and  of  intrigue,  will  vanish. 

Thus  the  policy  of  pubHcity  now  adopted  by  Mr. 
Schwab  will  have  a  revolutionary  effect.  Win 
or  lose,  so  far  as  this  present  issue  is  concerned,  he 
wiU  have  estabUshed  a  precedent  which  must 
rule  with  "big  business"  in  the  future — that  of 
working  with,  not  against,  public  opinion. 

"The  day  of  the  clear  Ught"  seems  less  of  a  vision 
because  of  this  significant  event. 


Editor  and  Publisher,  New  York,  July  8,  1916 

The  Bethlehem  Steel  Company  keeps  at  it. 
Their  advertisements,  setting  forth  the  facts 
of  the  armor-plate  situation,  are  logical,  hard- 
hitting and  winning.  If  the  campaign  had  been 
started  a  few  months  earlier  there  would  be  no 
doubt  whatever  of  the  result  upon  Congress. 


Electric  Railway  Journal,  April  8,  1916 

ANOTHER  CONVERT  TO  PUBLICITY 

With  the  beginning  of  hearings  in  Congress  on  the 
bill  passed  by  the  Senate  to  provide  for  a  Govern- 
ment armor  plate  plant  comes  the  announcement 
that  the  Bethlehem  Steel  Company  will  conduct  a 
publicity  campaign  for  the  purpose  of  laying  the 
merits,  or  demerits,  of  this  proposition  before  the 
country. 

The  formal  announcement  to  this  effect  says  that 
"In  order  that  all  concerned  may  have  the  clearest, 
most  concrete  and  definite  information  this  company 
can  give  on  this  question,  so  important  both  to  the 
nation  and  to  itself,  the  Bethlehem  Steel  Company 
will  issue  a  series  of  statements  to  Congress. 

Copies  wUl  be  supphed  to  the  press,  to  public 
officials  and  to  anyone  interested." 

The  first  of  these  statements  is  headed  "Why 
Should  Government  Money  be  Spent  for  an  Armor 
Factory?"  and  deals  with  two  possible  reasons  for 
such  an  expenditure;  namely,  the  insufficiency  of 
existing  plants  and  the  possibihty  that  the  Govern- 


ment could  produce  armor  at  a  lower  price  than  must 
be  paid  to  private  corporations. 

Other  bulletins  show  that  even  if  the  Government 
should  immediately  begin  an  armor  plant  it  would 
not  be  turning  out  armor  for  three  or  four  years,  and 
when  the  campaign  is  completed  the  public  will  have 
before  it,  plainly  and  tersely  stated,  all  the  informa- 
tion and  arguments  that  an  intelligent  man  should 
have  to  enable  him  to  make  up  his  mind  whether  or 
not  he  would  vote  for  a  Government  armor  plant. 

It  is  evident  from  these  bulletins  that  the  company 
is  following  a  carefully  thought-out  policy,  the 
execution  of  which  is  in  expert  hands. 

This  was  also  evident  from  the  distribution  of  and 
press  comment  on  the  remarks  regeu'ding  armor 
plate  in  the  company's  recently  issued  annual 
report,  and  the  statements  of  the  company's 
officials. 


Iron  Age,  New  York,  April  6,  1916 

LOW-PRICED  OR  DEAR  ARMOR  PLATE? 

.  .  .  The  only  answer  the  Secretary  of  the  Navy 
has  made  to  the  proposal  that  the  manufacturers 
will  supply  armor  plate  at  whatever  price  the  Govern- 
ment itself  shall  name  as  fair  is  that  he  is  "afraid 
of  the  'Greeks  bearing  gifts.'  " 

In  other  words,  he  would  have  the  Government 
enter  upon  armor  plate  manufacture,  no  matter 
what  the  cost,  and  in  so  doing  destroy  the  values 
represented  in  plants  whose  estimated  cost  is 
$20,000,000. 

Government-built  battleships  cost  more  than  those 
built  in  private  yards. 

Government-made  armor  plate  may  cost 
$600,  $800,  $1,000  a  ton— all  depending  upon 
the  political  necessities  the  Government  plant 
is  called  on  to  satisfy  and  the  rapidity  with  which 
it  is  turned  into  a  labor  union  paradise. 

As  the  issue  is  not  drawn.  Congress  has  to  choose 
between  paying  a  low  price  or  a  high  price  for  the 
Government's  armor  plate.  Signs  are  not  wanting 
that  members  of  the  House  Naval  Committee  see 
the  question  thus  clear  cut,  in  spite  of  some  very 
strenuous  efforts  to  befog  it. 


64 


What  People  Are  Thinking— Editorial  Coraiiient 


National 


.—Continued 


Iron  Trade  and  Metal  Market  Review 
Qeveland,  Ohio,  June  7,  1916 

PUBLICITY  AND  THE  LACK  OF  IT 

Paradoxical  as  it  may  seem,  publicity  and  the 
lack  of  it  explains  why  Congress  has  passed  legis- 
lation providing  for  a  Government-owned  armor 
plant. 

By  their  constant  muck  r£dLing  and  their  mis- 
chievous misrepresentations,  spread  wide  and  far 
over  a  long  period,  ignorant  and  designing  men 
combined  their  efforts  and  convinced  many  honest 
people  that  armor  plate  makers  were  charging 
the  Government  too  much  money  for  their  product. 

The  people  were  led  to  beheve  that  the  only 
solution  was  through  the  building  of  a  Government- 
owned  armor  plant. 

That,  in  brief,  is  one  angle  to  the  part  publicity 
has  played  in  the  Government-owned  armor  plate 
plant  legislation — the  part  of  vicious  spreading  of 
cleverly  concocted  falsehoods. 

During  all  of  the  long  years  of  attack  made 
upon  them,  armor  plate  makers  remained  silent, 
except  within  the  past  few  months,  when  the 
Bethlehem  Steel  Company  raised  its  voice  and 
began  a  publicity  campaign,  defending  the  manu- 
facturer ably,  and  in  a  dignified  manner. 

But  the  defense  came  too  late  to  prevent  enact- 
ment of  legislation  favoring  a  Government-owned 
armor  plate  plant. 

The  people  into  whose  ears  had  been  dinned  the 
campaign  of  muck  raking  had  become  thoroughly 
inoculated  with  the  misformation  constantly  spread 
before  them. 

Many  representatives  and  senators  in  Congress, 
some  of  whom  knew  the  attacks  made  upon  the 
armor  manufacturers  were  based  upon  falsehoods, 
voted  for  the  erection  of  a  Government  plant 
simply  because  they  thought  it  good  politics  to 
do  so. 

They  realize  it  is  a  foolish  project,  and  a  danger- 
ous one.  Perhaps  they  share  the  belief  and  hope 
that  Secretary  Daniels  will  never  authorize  the 
construction  of  a  Government  armor  plant.  .  . 


Mining  Journal,  El  Paso,  Texas,  April  22,  1916 

THE  ARMOR-PLATE  NONSENSE 

Apparently  the  bill  for  the  creation  of  a  Govern- 
ment cu'mor-plate  plant  is  going  to  be  passed  by 
Congress. 

It  will  then  become  a  law,  for  it  is  an  administra- 
tion measure. 

There  will  be  no  cost-ke«ping  in  the  new 
plant,  by  order  of  Congress. 

It  would  not  do  to  let  the  taxpayers  know 
that  armor  plate  made  by  the  Government 
may  cost  more  than  for  what  private  concerns 
offered  to  supply  it. 

The  upshot  of  the  matter  wiU  be  therefore  that 
the  Government  will  spend  $11,000,000  for  a  dupli- 
cation of  existing  plant. 

This  is  simply  throwing  away  money.  On  the 
other  hand,  the  plan  for  a  Government  nitrogen 
plant,  which  would  not  duplicate  anything,  does 
not  seem  to  be  meeting  with  favor. 

When  Congress  undertakes  to  do  its  own  engi- 
neering, it  usuaUy  makes  a  mess  of  things. 

In  the  present  case  it  is  making  a  mess  of  things 
in  a  scandalous  way. 

Financial  World,  New  York,  April  29,  1916 

BETHLEHEM  STEEL'S  PUBLICITY 
CAMPAIGN 

If  the  power  of  the  printed  word  is  able  to  show 
up  the  alleged  error  in  the  Senate's  bill  to  build  a 
Government  plant  for  the  production  of  armor 
plate,  the  president  and  the  chairman  of  the 
Bethlehem  Steel  Company  will  feel  they  have 
made  a  good  investment  with  the  money  they  are 
spending  in  the  Washington  newspapers  on  pub- 
Ucity  and  which  is  meant  to  influence  the  members 
of  Congress. 

These  announcements  do  not  conceal  their 
anxiety,  but  are  frankly  outspoken. 

They  assert  their  purpose  is  to  save  an  invest- 
ment of  over  $7,000,000  their  company  haa  put 
into  armor  plants. 

They  contend  this  sum  was  invested  in  the  firm 
belief  that  the  business  would  remain  free  from  any 
Government  competition. 


65 


What  People  Are  Thinking — Editorial  Comment 


NationaL 


Continued 


.  .  .  The  strongest  argument  in  the  company's 
publicity  campaign  is  its  willingness  to  have  a  Con- 
gressional Committee  investigate  the  cost  of  making 
plate  and  then  fix  a  fair  margin  for  profit  which 
the  company  would  promptly  accept. 

This  last  proffer  is  deserving  of  serious  con- 
sideration by  Congress  before  binding  the  nation 
to  an  expenditure  of  $11,000,000  for  the  erection 
of  a  plant  whose  success  would  be  dependent  upon 
what  now  appears  would  be  a  mere  experiment. 

Railway  Age  Gazette,  New  York,  May  12,  1916 

GOVERNMENT  OWNERSHIP  OF 
EVERYTHING 

The  socialists  and  near-socialists  count  that  day 
lost  whose  low  descending  sun  views  no  new  proposal 
for  Government  ownership  of  something.  They 
are  now  advocating  Government  construction  and 
operation  of  a  plant  to  make  armor  plate  for  war 
vessels. 

The  argument  is  that  this  is  necessary  to  prevent 
private  manufacturers,  such  as  the  Bethlehem  Steel 
Company,  from  overcharging  the  Government. 

Does  anybody  contend  that  a  Government  plant 
would  make  armor  plate  cheaper  than  plants  owned 
by  corporations?    Nobody  who  is  in  his  right  senses. 

The  proposition  is,  in  effect,  that  the  Government 
shaU  deliberately  lose  money  in  runing  a  factory 
of  its  own,  in  order  to  prevent  private  capitalists 
from  making  too  much  money. 

Government  ownership  of  railroads;  of  telegraphs 
and  telephones;  of  steamships;  of  munitions 
factories;  of  coal  mines — these  are  a  few  of  the 
projects  which  recently  have  been  seriously  broached 
in  Congress.  Recently  a  Kansas  educator,  who  is 
fully  imbued  with  the  spirit  of  the  age,  advocated 
Government  ownership  and  management  of  the 
moving  picture  industry. 

And,  meantime  everybody  is  unanimously  de- 
nouncing the  Government  for  the  "pork  barrel," 
for  not  adopting  and  carrying  out  a  satisfactory 
program  of  preparedness,  and  for  general  all-around 
incompetency  and  cussedness. 

How  logical  we  are!  The  worse  the  politicians  do 
the  jobs  we  have  given  them  the  more  we  want 
to  intrust  them  to  do  I    They  mismanage  the  post- 


office  department;  therefore,  we  should  turn  the 
railroads  over  to  them.  They  waste  millions  on 
waterways;  therefore  we  should  give  them  a  chance 
to  waste  our  money  on  Government  owned  ships. 
They  mismanage  the  navy  yards;  therefore,  we 
should  give  them  armor  plate  factories  to  add  to 
the  "pork"  barrel. 

Ohio  Valley  Trades  Review,  June,  1916 

AGAINST  GOVERNMENT  PLANTS 

The  Bethlehem  Steel  Company  has  inaugurated  a 
publicity  campaign,  the  object  of  which  is  to  correct 
the  evident  misapprehension  of  fact  which  is  being 
spread  throughout  the  country  by  the  advocates  of  a 
Government-owned  armor  plant. 

The  Trades  Review  is  firmly  of  the  opinion  that 
this  country,  with  its  vast  undeveloped  natural 
resources,  is  not  ready  for  Government  ownership  on 
anything  like  a  pretentious  scale. 

The  system  probably  may  be  said  to  work  well 
enough,  insofar  as  it  relates  to  municipal  ownership 
of  certain  plants  whose  service  is  whoDy  local,  but  the 
Government  never  has  shown,  to  any  considerably 
convincing  degree,  that  it  is  able  to  accompUsh  the 
same  end  more  cheaply  than  the  private  corporation 
can  do  it. 


66 


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UNIVERSITY  OF  CALIFORN  \  LIBRARY 
BERKELEY 

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